Iowa is not a community property state, but that does not change the fact that the home is still considered collateral for the loan. In the vast majority of case the mortgage would still be owed by the surviving spouse if he or she wished to keep the property. There have been some very interesting rulings in a few state courts that have allowed the suviving spouse to take over the property "free and clear" regardless of an existing mortgage, because of the state laws concerning marital survivorship rights. A few cases are still on appeal but the others have been declared legally binding in favor of the surviving spouse. This is one reason savvy lenders should always require a married couple to be joint mortgage holders.
If the mortgage is in your name it would not be affected by the death of your spouse. Mortgage life insurance is coverage that is taken out so that your house would be paid for in the event of your death.
Yes, unless you arrange for insurance to pay the mortgage in the event of your death. Your son would inherit the property subject to the mortgage. He would need to continue paying the mortgage or the bank will take possession of the property by foreclosure.Yes, unless you arrange for insurance to pay the mortgage in the event of your death. Your son would inherit the property subject to the mortgage. He would need to continue paying the mortgage or the bank will take possession of the property by foreclosure.Yes, unless you arrange for insurance to pay the mortgage in the event of your death. Your son would inherit the property subject to the mortgage. He would need to continue paying the mortgage or the bank will take possession of the property by foreclosure.Yes, unless you arrange for insurance to pay the mortgage in the event of your death. Your son would inherit the property subject to the mortgage. He would need to continue paying the mortgage or the bank will take possession of the property by foreclosure.
If you have an outstanding mortgage on your property at the time of your death the lender will take the property if the mortgage isn't paid. You can purchase some type of mortgage insurance or life insurance to pay off the mortgage in the event of your death. Otherwise, your heirs will need to pay it if they want to keep the property.
Credit life insurance, Mortgage insurance, or decreasing term insurance.
The benefit of a mortgage life insurance is that in the event of the death of the policy holder, your family will receive benefits to pay on the mortgage. You can learn more about this at the Wikipedia.
That is typically one of the contingencies that mortgage insurance will pay. The other tends to be when someone loses their job.
NO. Losing a spouse is NOT a "top stressful life event" .... it would be in the "top life traumas" I respectfully disagree. Death of a spouse IS a life event, and in fact, is #1 on everyone's scale of most stressful life events (it is #1 on life events for adults; death of a parent is #1 for non-adults). Even things that should be happy occasions (vacation, holidays) have a stress rating.
No. To cover mortgage debt an insurance company can write a life insurance policy on the mortgage holder/s. This policy usually is a term life insurance policy that in the event of death pays the balance due on the mortgage at the time of death. The term of the policy would be the length of the mortgage and the policy value decreases as the mortgage is being paid off by the policy holder, eventually expiring at the end of the term along with the mortgage. Since the benefit paid under this type of policy is constantly being reduced, and eventually becomes zero, the premiums are considerably lower than a whole life policy in which a fixed sum is payable on the death of the insured.
As far as I know, only in the event of the death, or unfaithfulness and subsequent divorce, of their previous spouse.
Mortgage insurance protects a homeowner in one of two ways depending upon what type of insurance it is. Mortgage insurance is one of two types. Mortgage life insurance pays off the mortgage in the event of death. Payment protection covers job loss or disability of homeowner.
The purpose of mortgage protection life insurance is to protect the home from being lost in the event the mortgagee passes away. The life insurance will pay off the balance of the existing mortgage to the finance company.
change I would argue that 'change' is not an event, it is a condition. The greatest stress-producing life event is death of a spouse (for adults) and death of a parent (for non-adults). While it is true that change is at the root of all events and all stress, change itself is not an event.
Mortgage Insurance protects the LENDER in the event of a foreclosure and will pay any $$$ loss to them....no protection at all for YOU. Mortgage Life will pay-off your mortgage in the event YOU or the covered person dies.
You need to look into what is called "Estate Planning". Basically, you need a last will and testament to say who gets what, life insurance to cover any debts, taxes or final expenses. You should talk to a financial consultant or insurance broker who is familiar with estate planning. If you still have a mortgage on your home, consider purchasing a mortgage protection insurance policy. Among other coverage benefits, these policies pay off your mortgage in the event of death. I recommend fully researching the benefit of purchasing a policy like this. If your life insurance policy includes enough money for your surviving spouse to make mortgage payments then this extra insurance may be unnecessary.
The best mortgage payment protection depends on what type you are looking for. Some mortgage payment protection only pays out in the event of death while other will pay out for job loss and severe illness. The best will depend on your needs and where you live.
Samantha Klaburner is an air traffic controller, real estate, mortgage and insurance broker. Owns a travel agency and wedding and event planning company, Extreme Event Planning.
true it is stressful that sucks losing someone :(
Is this so that your spouse can become sole owner of the property in the event of your death? If so, it would be accomplished by a deed from yourself, to yourself and your spouse, as joint tenants, in consideration of 'natural love and affection.' Don't try to do it by yourself. There are often technical issues involved and they can vary from jurisdiction to jurisdiction. A technical error could easily defeat your intention and cause hardship to your spouse after your death. Have a lawyer do it.
The most stressful event according to the Holmes and Rahe Life Events Scale is the death of a child or spouse.
Private Mortgage Insurance is a policy that covers the mortgage company in the event the home buyer defaults on the mortgage note. It is commonly referred to as "MI" and is usually obtained through the mortgage company. Mortgage Insurance does not cover the real property but rather the Mortgage Note. It comes under the category of Contract Performance Insurance and is in the Property and Casualty line. The term "private mortgage insurance" differentiates it from government insurance. Loan products such as FHA, VA and USDA Rural Housing loans also carry insurance but it is from the government and is built into the cost of the loan, rather than being purchased seperately.Answer:It is insurance that the lender forces you to buy if you do not have enough equity in the property (usually 20%). The insurance only protects the lender in the event the borrower defaults and the foreclosure sale does not bring enough to pay off the loan.
If the real property is owned as tenants by the entirety or joint tenants with the right of survivorship the interest of the decedent automatically passes to the surviving spouse and they need to do nothing except record a death certificate in the land records.
A funeral insurance is a policy that in the event of your death, the insurance company pays all expenses for your funeral.
A qualifying life event change is defined as a change in your status due to marriage, birth or adoption of a child(ren), death of an immediate family member, divorce, loss or gain of insurance coverage by your spouse, or termination.
financial and mortgage crisis
the answer is subprime mortgage crisis. (A+)