My parents had an line of credit on 2 homes. This was done in 2001. In 2206 we transferred all property into a trust with my mom/dad as trustees. My dad dies in 2006 and my mom in December of 2010. My mom was paying both loans up until her death. We stopped paying on them and now the bank is coming after them for the full amount of both loans. Can they come after my sister and myself since we are the successor trustees for payment? How do I get the bank to charge these two items off?

You can't get them to charge off, as successor trustees you both are responsible for the loan payout. So, you will have to sell and pay off the mortgage on the two homes. You will have to convince the bank to give you time to do this.

Why would you expect the bank to 'charge them off'; they are still owed money on the homes; there are still mortgages. Notes have been signed and you are the trustees.

Tick

I agree with Tickle. Was there a will and has it gone through probate? Mom died 4 months ago so I'd guess no on completeing probate.

There will be no probate no assets held in their names. I had a similar situation when my dad died, he had a line of credit on a building, we stopped paying and they didn't try to foreclose they charged it off. They said since my dad signed the agreements we were not responsible. But I am thinking it's the same situation here. How do I go about asking the bank to charge these off?

I have never seen it work that way. The building is the asset and the bank places a lien or sues. BTW awrite off is simply an accounting step or measure, it does not mean the debt is gone or resolved at all. You are free to ask the bank whatever you want but I think they will not go your way

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Originally Posted by lola699

They said since my dad signed the agreements we were not responsible. But i am thinking its the same situation here. How do i go about asking the bank to charge these off?

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Hello lola:

I think the situation is quite different no matter WHAT the bank told you... My bet is there was NO equity in your dads building for the bank to go after, so THAT'S why they forgave the loan.. However, these two houses appear to have plenty of equity for the bank to get, so I can't imagine WHY you think they should forgo it. You wouldn't do that. NOBODY would. The bank surly won't.

excon