equity unlock loan for seniors cba questions

Discussion in 'Loans & Mortgage Brokers' started by Happykid, 21st Nov, 2019.

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  1. Happykid

    Happykid Member

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    Dear all,

    My mum started a joint equity unlock loan for seniors from the commonwealth bank with another man (not my father) using his house few years ago. The loan is $200K and they have already used all of it, so it now $200K in debt.

    The house is own by that man not my mother, my mum passed away recently and that man still alive but he just moved to age care home and may be permanently.

    My question is now that my mum passed away, does she responsible for the $200K debt? I have spoken to the lawyer who is planning my probate application, he said as my mum have assets, so she may need to pay the $200K debt by selling her own house (not the man's house). Please help.

    Thanks all.
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Sounds like your mother and the bloke are joint borrowers, and jointly and severally liable for the debt. The man is mortgagor.

    Your mother's estate would still be liable for the debt, as is the man.
     
  3. Happykid

    Happykid Member

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    Thanks Terry. Wonder if there's any way to protect Mum's estate and that man is still alive. Cheers
     
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Non that I know of. Who used the money?
     
  5. Happykid

    Happykid Member

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    They both use the money...
     
  6. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Then I don't know how she could not be liable.
     
  7. Gill Bates

    Gill Bates Well-Known Member

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    My GUESS is the estate executor of mothers estate will not be able to be finalized the estate, until this loan is paid out, or new terms agreed with the other party ( the man) or their legal representative.
     
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