If a borrower dies while their loan is in repayment, we require the executor or administrator of the estate to send a death certificate to us. Then, we file a claim against the borrower’s estate to attempt to recover the outstanding loan balance. Depending on the size of the estate, we may not be able to recover the outstanding amount of the loan. If the estate does not include sufficient assets to repay the full outstanding loan amount, we will treat the unsatisfied portion of a loan as defaulted with zero value.
- Is an investor allowed to contact a borrower if the borrower is late?
- What happens if a borrower is the victim of identity theft?
- Where can investors see ongoing collection activities on late Notes?
- What are the regulatory restrictions related to collections?
- What is a payment plan and how do I track it?
- What happens if a borrower dies?
- What to expect when a loan is late?
- What happens when a loan is "charged-off"?
- What is the difference between a loan that is in “default” and a loan that has been “charged off”?
- What do the different Note statuses mean?