What happens to a deceased borrower’s loan balance after a sale? | NC

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Q: What happens to a deceased borrower's remaining loan balance after the collateral is sold? A: The lender generally applies the collateral-sale proceeds first to reasonable repossession and sale expenses, then to the secured loan. If money remains after those amounts are paid, the surplus belongs to the borrower’s estate. If the proceeds do not cover the debt, the deficiency may become a claim…