2007-05-06 10:43:31 · 12 answers · asked by sm 3 in Business & Finance ➔ Renting & Real Estate
It is almost never repossessed. There are several possibilities. The payer could have an insurance policy to cover the cost in case of their death. This is very common and worth checking into. If there is insurance it will also name a beneficiary to the policy.
Being the primary payer does not always equate to also being the primary owner. You will have to check and see if the property was jointly titled or not and also see if it was joint and survivorship. The other thing that needs to be check is if the payer had a last will and testament and if his ownership was passed to another person. The last thing is depending on the size of the estate the ownership of the property may have to go to probate court to be settled.
More than likely the property is passed, willed, or deeded to another person and that person has to assume taking over the payments, if it hasn't been paid off by insurance.
2007-05-06 11:30:14 · answer #1 · answered by ttpawpaw 7 · 0⤊ 0⤋
No, no, no! When a person dies, there is always an executor. Whether there is a will or not, there is always someone who is responsible for the person's responsibilities. Usually it is a spouse or child. I guess if there is NO ONE at all, not even a friend - then there would be an issue. I can't imagine it happens too often.
Anyway, when a person dies, both their money & possessions (on the positive side) and their loans, mortgages, etc. (negative side) are all taken care of by the executor. Bills must be paid. Normally, the executor takes care of that as part of the person's estate. For example, if $10,000 is owed on a credit card bill, and $20,000 is sitting in a bank, the people inheriting this stuff aren't going to get $20,000, they will get $10,000 (the bills have to be paid!) So in the case of a mortgage, who ever gets the house, either has to take control of it (transfer the deed/mortgage) or sell it and get the profit.
2007-05-06 11:14:51 · answer #2 · answered by CG 6 · 0⤊ 0⤋
No. Nobody will grant a mortgage without life assurance attached to it, and when the house owner dies, the mortgage is automatically paid off by that policy. The house then becomes part of the estate of the deceased and is ultimately inherited by his or her heirs.
2007-05-06 11:00:13 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Every responsible lender will insist on the borrower taking life insurance to cover the mortgage in the event of a death. Simple.
2007-05-07 05:38:32 · answer #4 · answered by Anonymous · 1⤊ 0⤋
There should be a life policy set up to pay the debt off in the event of death.
If not, family have to pay, or the property will be repossessed.
You could always ask the bank for a few months grace while you sell the house and pay them back.
2007-05-06 10:49:09 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Not ALWAYS. Anyone can make payments to the lender as long as they are notified of the situation. Otherwise, the death could trigger the alienation clause and thereby accelerate the note (lender calls it due).
2007-05-06 10:56:04 · answer #6 · answered by Anonymous · 0⤊ 0⤋
if insured mortgage is paid of house goes to next off kin
2007-05-10 09:42:22 · answer #7 · answered by kaye j 3 · 0⤊ 0⤋
If you don't continue to make payments, then yes they'll repo it. That why it is good to have life insurance. A good amount of life insurance to have is at least 10 times your yearly gross income.
2007-05-06 10:53:25 · answer #8 · answered by Anonymous · 0⤊ 0⤋
No, I think it is left up to the exectuters of the will to deal with the repayments or to sell the house if they don't wish to pay it.
2007-05-06 10:50:04 · answer #9 · answered by Michelle 4 · 1⤊ 0⤋
It depends on the mortgage type.
2007-05-06 10:51:26 · answer #10 · answered by Tiko 3 · 0⤊ 1⤋