If a lender uses "a married man as his sole and separate property" on the promissory note and trust deed, does the loan die with the debtor?
I have a promissory note and second trust deed filled out by a private lender as "a married man as his sole and separate property". Will this loan terminate upon his death or can it be passed to his heirs through probate?
Unfortunately there is only one way for a loan to die and that is by paying it off or sometimes you can negotiate a reduction but ultimately it comes down to retiring it by paying it off. If a person dies someone else is going to need to keep making payments or qualify on the loan and there are a bunch of dicy issues that flow into that event that need a mine sweeper so you don't fall into the land mines.
The survivors even have a duty to submit a death certificate to the lender but most people fail to do this. The best scenario is when a person has life insurance and it is left to the survivors to pay off the loan...super important and don't know why more people don't take this easy responsible step.