Aged Parent Guarantor for House Mortgage

[dewdrop]

There must be many cases where a parent went Guarantor for such a Mortgage without giving the lender any supporting security. Wondering what would be the lenders attitude be say in the event of the death of the Guarantor and assuming the Mortgage was paid up to date would they seek repayment from the Estate or perhaps seek a fresh Guarantee from the surviving spouse should that be the case

 

[ronron]

Dewdrop, I would think the bank's PG would lapse on the death of the parental guarantor, and if they want more security, the bank may ask or try to negotiate. Best to review the facilty and offer letters. If they are mute, then it is up to the bank to makie the next move.