Secured loan problem when one partner passes away

garymal

My father recently passed while sorting out financial affairs for my mother a secured loan had been taken out by dad in 2004 without mams knowledge.
Now apparently there are two signatures on the application hers undoubtedly has been signed by my dad.
Where does she stand on paying off the remainder of the loan as clearly it was fraudulant done by my dad without her knowledge.

Tixy

Tough one, and she probably needs to take some proper advice on this.

Was the application witnessed?

Was there PPI on the loan? and will that pay out on his death?

I imagine if it could be proved to have been a fraudulent application by him and the lender agreed then they would seek to recover the funds from his estate.

So that they depends on the value of his estate, how the house was owned etc.

If she is unable to prove that the application was fraudulent and without her knowledge then you would need to look in to the paperwork to see whether the loan becomes repayable on the death of either one of the borrowers, or whether the loan can continue as was.

macman

If it could be proven that the signature of your mum was forged (not easy in these circumstances), then the debt would be owed solely by your father's estate. So if he left any assets and your mum or you inherited, the estate could try to reclaim the amount due, if it's already been paid out to the beneficiaries.
If he left no assets, then there is nothing to claim from.
Who is the executor, and what was the loan secured against? And, since the loan was taken 10 years ago, has not a large part of this now been repaid?