Many charges are charged when borrowing from banks. The fee charged is called the “file cost”. The costs of this file are the costs the bank receives for the loan and the person’s life insurance.
The death debt of the deceased is paid by the life insurance. In addition, the installments paid in case of insurance coverage may be collected by the heirs from the life insurance company.
The person who passed away housing loan debt
When obtaining a mortgage, the bank may request both a mortgage and a guarantor and if the loan is not paid, the bank may sell it and collect it. In the case of death, this situation is completely different. This is because life insurance is provided when housing loans are taken, and life insurance pays all debts after the person dies. What the person has to do is to take the death certificate of the deceased relative and take it to the bank.
Repayment of Loans Paid from the Life Insurance of the Dead Person
The loan debt of the deceased is paid by the life insurance. The person received a 10-year housing loan and paid the full installments for 5 years but passed away after 5 years. Will these 5-year installments be withdrawn?
Yes, the loans paid by the deceased can be collected by the life insurance company. In the event that an agreement is made according to the total debt in the life insurance policy, all liabilities must be reimbursed to the heirs of the deceased person when the person dies.
In such a case, a petition must first be requested to pay the loan amount paid to the life insurance company to its heirs. If a negative answer is given, a lawyer may be sued for life insurance and the amount of the loans paid by court order may be collected.
You can visit the related page to find out if credit is available for the inherited home.
In which situations the credit debt of the deceased person is not paid?
The person may not have taken out life insurance while taking out a loan. Because life insurance is not compulsory. In this case, the remaining installments of the loan must be paid by the heirs. If their heirs do not want to repay their debt, they must refuse the inheritance.
If life insurance has been made but suspicious death is detected, life insurance will be invalid and no credit debt will be paid.