1, loan guaranteed by natural person
If the borrower's relatives or other third parties sign a joint repayment responsibility contract with the lending institution when applying for a loan, the lending institution will require the guarantor to fulfill the guarantee obligation, assume the joint repayment responsibility and repay the remaining debts in case of the borrower's long-term arrears.
2. There is no third party as a guarantee.
Without any third party as a guarantee, the borrower chooses the mortgage loan method, so if the overdue time reaches about half a year, the lending institution will generally bring a house auction lawsuit to the court, and the proceeds from the auction will be used to pay off the debts first. Of course, if the family of the missing person repays the loan on his behalf, then after the loan is fully paid off, his family members can go through the formalities of canceling the mortgage registration and then keep the house.
3. Unsecured loans
If the borrower initially chooses an unsecured loan without providing collateral or joint liability of a third party, there is no need to repay the loan.
According to the provisions of the Inheritance Law of People's Republic of China (PRC), the inheritance should pay off the taxes and debts that the decedent should pay according to law, and the taxes and debts should be limited to the actual value of the inheritance. If it exceeds the actual value of the estate, the heir will voluntarily repay it. If the heir renounces inheritance, he may not bear the taxes and debts that the decedent should pay according to law.
What should I do if the borrower dies? Generally speaking, the amount of loans repaid by relatives or heirs is limited to property inheritance. If the successor fails to pay off the loan, the successor shall not bear legal responsibility.