<p>
</p>
<p>Sometimes…s^&t happens as they say and a co-signer/borrower who once had the financial means to be able to anticipate paying back loans being taken out is suddenly unable to due to some unforeseen circumstance 4+ years later…whether that’s due to a sudden family medical emergency which wipes a family out financially or an economic downturn like the one we had in 2008…one with effects still being felt to this day. </p>
<p>As with all risky investments…banks/lenders have the right to do all they can to minimize their risks. However, they cannot expect/demand that the risks be absolute zero…especially if the borrowers/co-signers are subsequently no longer able to pay.* If they didn’t want any risks…they shouldn’t be in the lending business in the first place. </p>
<p>Moreover, what if everyone in a given family dies so that there’s no one to collect on? Would it even be feasible…much less morally ethical for banks/lenders to demand payment from the dead?**</p>
<ul>
<li>If loan terms prove too onerous due to extenuating circumstances and cause “undue economic hardship” as defined by Federal/state laws, then a moratorium/forgiveness on loan repayments & interest/of the loan altogether may be mandated…regardless of the original terms of the loan contract.<br></li>
</ul>
<p>** In actual practice…the borrowers/lenders would be out of luck…especially if the family has no estate or one too small to cover the loans taken out.</p>