Does the bank assume the loss? I understand that non-payment of the lot loan will result in foreclosure of the land. I am wondering if the bank can go after our estate after my husband & I pass away if the value of the foreclosed lot is less than the value of balance of the loan. Does the bank assume the loss? The lot, which is in a gated community ,is empty – no house built on it. The only collateral to the loan is the lot. The contract does not contain any provision that the bank can go after the other assets of the loan signers ( my husband and myself).