Assuming that the mortgage insurance policy was in force at the time of death, and all other conditions of coverage have been met, the insurer should pay off the balance of the mortgage; that is the purpose of insurance of that type.
Thereafter, the property will pass, free of the encumbrance, to that person who may have been named as a co-owner of the property. If the decedent is shown to have been the sole owner of the property as of the time of death, it will pass according to terms of his/her Will; if there was no Will, it will normally pass according to the laws of descent and distribution of the locality in which the decedent lived at the time of his/her death, or where the property is located.
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.
The estate must be probated. Either the children need to pay the mortgage or the bank will take possession of the property by foreclosure.
NO Home Owners insue covers the Home. You might look to Mortgage Insurance for paying a mortgage.
Only if they had mortgage insurance.
Joint Mortgage Term Life Insurance
PMI has absolutely nothing to do with the death of a home owner. There is no benefit to the PMI in this situation. A Mortgage Life Insurance policy would be of great benefit as it would pay off the mortgage on the house at the death of the homeowner.
No. For that kind of benefit you need mortgage insurance or a life insurance policy.No. For that kind of benefit you need mortgage insurance or a life insurance policy.No. For that kind of benefit you need mortgage insurance or a life insurance policy.No. For that kind of benefit you need mortgage insurance or a life insurance policy.
generally nothing. Insured person can name another beneficiary.
The answer is when he dies the reverse mortgage company will settle up the loan, so you will have to either sell the house or refinance with a new mortgage.
There are many things that would make a mortgage insurance premium increase. Mortgage insurance is used when someone dies and pays money so that the mortgage will be paid. Smoking or participating in dangerous activities will increase the premiums.
You own the land subject to the mortgage.
Mortgage Protection Life Insurance is a good idea if you want to protect your mortgage. It pays the outstanding balance of your mortgage if the mortgagor (insured person) dies. Mortgage protection life insurance coverage is usually in the form of decreasing term insurance, with the amount of coverage decreasing as the outstanding mortgage debt decreases. Usually, the proceeds of the mortgage protection life insurance are paid to the beneficiary, which is the mortgage company holding the mortgage loan. Some people choose instead to buy level term life insurance in the amount of the mortgage, and the benefits are paid to the insured's beneficiary (family member), who in turn can use the proceeds for any reason, including to pay the mortgage.