What happens to a home repair loan if the borrower dies?

In a situation where a person who has taken a home repair loan dies without paying the loan off, the balance amount of the loan along with the accrued interest becomes due to be paid. This amount maybe paid by a number of sources. They can be the property heir, who can pay the balance amount and keep the house. However, if their financial status does not allow them to pay off the loan amount, they can sell the house and pay from the proceeds. The property heirs also have the option of paying off the balance amount in monthly installments if they cannot afford to pay it at one go but at the same time would like to retain the property. In situations where the loan amount has exceeded the value of the property itself, the property heir will not be liable to pay any amount more than the value of the property itself. Apart from the heir the due amount can be paid by estate as well as the legal representative of the borrower. If the financial institution which paid the loan does not have any of the above sources to get back the balance amount then it can sell the property to another party and recover the amount.

[tags]death mortgage loan,What happens to a home repair loan if the borrower dies[/tags]