want know about mortgage insurance ?

Question

wanna know if a bank does not make a mortgage(insurance) while giving a home loan and after that the owner expires.In this condition what can be done legally or in some other way!!!
Please Advice.

Answer 1

My experience has been that the lending institutions require you to have mortgage insurance unless you put a down payment of a certain percentage of the purchase price of the house. I think it is aroun 15% of the purchase price of the home as a down payment. That way if anything happens to you the lending institution is paid back. By the way if you fail to pay for pretty much any reason, the lending institution WILL resposess your house, sell it for what they can get, repay themselves the outstanding loan amount then give the rest back to you or your estate.

Answer 2

It is advisable to take a mortgage redemption insurance while taking a loan,
The case u have discussed there is nothing to done legally and the loan is to be repaid by the legal heirs of the Debtor. Else the Bank Will recover its outstanding by the disposal of the property.

Answer 3

Your question is extremely unclear. Mortgage insurance, aka, mortgage impairment insurance, only covers the BANK up to the LOAN AMOUNT if the house burns down. PMI, Private Mortgage Insurance, if it is in place, only covers the BANK if the owner dies. It does NOT pay anything to the estate.

If the owner "expires", the mortgage balance must be paid from his estate before the heirs get anything.

Answer 4

mortgage lnsurance means suppose you purchase a house with bank loan the bank will insure the property in their name and if anything happens they will take the possession of the property and they will take care of their money. your family will not taken care by the bank.so you want to mortgage your house in your name you have to take a policy on your name and the premium amount also very less. if you take a policy something happens both the loan amount and the property will take care by your family members