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It is normal for people with a mortgage loan to have a life insurance to cover the amount of the loan. If this is the case the insurance will pay off the loan and the property will become part of the dead persons estate in its entirety and (after inheritance tax) the heirs will inherit it.
If there is no insurance then the outstanding balance of the mortgage becomes a charge on the estate of the deceased and if there is not enough money available to pay this, then the house will have to be sold to realise this money. If after the sale of the house the estate is still short of funds to cover the mortgage (after funeral expenses are met) then the mortgage company will have to take that loss.
What else can I help you with?
What happens to a mortgage loan when the sole loan holder dies and the property is titled Joint tenants with full rights of suvivorship?
The mortgage obligation remains on the property. If the holder of the mortgage dies then her heirs own the mortgage.
If your husband has a reverse mortgage and you are not 62 what happens to you with the house if he dies?
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.
How can someone apply for a mortgage loan?
Someone can apply for a mortgage loan by going to the Realtor website. The website has information on how people including those with bad credit can apply for a mortgage loan.
What happens if a co-signer on a mortgage dies?
If a co-signer on a mortgage dies, the responsibility for the mortgage typically falls solely on the remaining borrower. The lender may require the remaining borrower to refinance the loan in their name or find a new co-signer. If the mortgage is not paid, the lender could foreclose on the property.
What happens when someone you cosigned a mortgage for has filed for bankruptcy?
When you co-sign on a loan or mortgage for someone, you are promising to make the loan payments if they can't. When someone files for bankruptcy, they are claiming that they cannot make their payments. It would stand to reason that if someone you co-signed on a mortgage for files for bankruptcy that you would then be liable for making the payments.
Can someone on disability cosign a mortgage loan?
You need to ask a mortgage agent.
What happens to a home if you are not on the loan but on the title-deed and the person on the loan dies?
what happens if your husband dies and i am on deed,but not on loan.am i responsible for the loan and do i keep the house/
Why would a person be trying to find a reverse mortgage lender?
Someone might be looking for a reverse mortgage because the loan doesn't usually need to be paid back until the borrower dies or moves out of their home.
What happens to the principal paid over time in a loan or mortgage?
The principal paid on a loan or mortgage decreases over time as the borrower makes payments, reducing the amount owed on the loan.
What happens with a Mortgage modification after 5 years?
your loan becomes due ?
When the insured dies and a loan exists what happens?
Benefits are reduced
What happens if you cosign a loan and the other person dies?
yes
