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#1466833 - 11/10/10 09:39 PM Putting a loan in default upon death of guarantor
Many Hats Offline
Platinum Poster
Joined: May 2008
Posts: 915
Orlando, FL
In our closing documents (we use Laser Pro), it states in our Note that the loan would automatically go into default upon the death of a guarantor. We have a borrower who is wanting us to remove that and stipulate that we provide written notice and time frame to cure before we put the loan in default.

Has anyone ever heard of this?

It's perfectly okay to put it into default upon the death of the guarantor, correct?

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#1467494 - 11/15/10 01:07 AM Re: Putting a loan in default upon death of guarantor Many Hats
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,225
Galveston, TX
The Bank has the right to include such a clause in its contract. The borrower has the right to try and negotiate terms. Whether or not the Bank choose to make the loan under the terms that the borrower would like to have is totally up to the bank.
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