When we have a loan secured by real estate and the borrower has passes away, should the entire loan balance be charged-off, or just the amount above fair market value less cost to sell? Should the remaining balance be classified Substandard and moved to OREO?
We have a customer who passed away. The customer was the sole owner of two corporations. The first corporation is a real estate holding company. There is a loan and DDA to this entity. The loan payment is auto-debited from the DDA. There is a second DDA to the other entity, also a corporation, which is to the operating company. Can we continue to pull the payments from the DDA to keep the loan current until the estate is settled and the loan paid off?
When the owner of an HSA passes away and there is a signer left, does the HSA need to be frozen or closed, or does the signer get to continue using it?
When a borrower is deceased, family members continue to make payment and the account has an escrow account:
1. Is the bank still obligated to continue paying taxes and insurance from the escrow account?
2. If the loan has PMI does the company need to be notified?
If the loan does not have an escrow account:
1. If the loan payments are still being paid by a family member and the insurance is being paid but left in the deceased person's name, what avenue should the bank take?
How long after the owner of an IRA is deceased does the beneficiary have to withdraw the money and close the account?
When a customer dies, should they be removed as a joint obligor on a loan?
I had a call from a customer that is joint on a HELOC and one of the joint owners passed away. She would like to remove him from the HELOC. Can this happen?
Can an employee withhold information on a dead customers loans from the court appointed executor?
The Deed of Trust says that death is considered default. The dead borrower's family is keeping up with the payments but causing major damage to the house (appraisal conducted shows this). Can the bank foreclose even if the payments are being kept up by the family? If so, do you have to wait 120 days if the borrower is dead? Also, an estate was opened but the bank didn't make a claim, and the estate is now closed.
We were notified several months ago that a customer died. She had a checking account and a home equity loan with us, both singly owned. We have locked the checking account so no activity can occur on the account until we receive the proper paperwork from the PR of the estate. No payments have been made on the home equity since the death of the customer and now loan servicing wants to debit the checking account to bring the loan current and then to debit the account monthly for the payment. Is this permissible or advisable?