Monday, 28 July 2014

Mortgage, a borrower's death

As a rule, the procedure in the case of a mortgage is dependent on whether the borrower borrower alone or possessed Borrower. What are the possible scenarios for this type of procedure?

No Borrower

If the borrower enlisted commitment alone, after his death, the mortgage agreement simply expires. If the loan was secured assignment of life insurance, the bank will ask the insurer for compensation. Its height can accurately correspond to the sum of debt, which is equivalent to the fact that the heirs receive the property free of mortgage. The value of the policy, however, may be greater or less than the value of the loan, which will result in an overpayment or underpayment of credit. In both these cases, the overpayment and underpayment possible will be accounted for part of the estate, ie, the heirs will inherit a certain amount or to repay the remaining debt.

This debt will obviously be higher if adequate life insurance is not included. Then the bank will determine the heirs of the deceased. They can, but they do not have to accept decline. However, if you decide to adopt it, it will be obliged to repay the obligation, to release the property from the mortgage. If they have an appropriate credit rating, it may still repay the loan in installments. They can of course also a time to pay off the remaining debt, or sell the inherited property, and thus obtain funds to repay the loan.

Mortgage contract does not expire, however, if the deceased took a loan from another współkredytobiorcą. Then for repayment of the loan will be responsible borrowers and second all heirs of the deceased, unless of course received a decline. Also in this case there may be a possible repayment of part / whole loan from the execution of claims under an insurance policy on the life of the deceased.

If he did not have adequate insurance, the amount of debt remains unchanged. If the debt is not repaid by means of compensation, the bank with all the host fall heirs to sign the relevant annexes to the credit agreement. They will be with współkredytobiorcą responsible for the further repayment of the loan in fixed during the division of the estate section. The same principle will function as the real estate division after repayment of the mortgage obligation. Finally so współkredytobiorca and everyone taking fall heir so they had a small part in the value of the property, ie, for example, half, quarter, or one eighth of its value.

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