Legal Question in Insurance Law in Texas

Question related to economics and law in Texas USA:

Recently, my cousin's husband died. It happened just as they moved to a new apartment they just bought.

Her husband took care of everything with regard to the mortgage and the property buying process. They took a high mortgage based his high income.

Today they have difficulties due to their commitments and do not know if the mortgage was insured. How can they tell if the mortgage is insured for case of death? Are there any default mortgage insurance? Is there a law that may exempt or ease mortgage payments?


Asked on 12/06/10, 7:45 am

2 Answers from Attorneys
Donald McLeaish McLeaish&Associates;, P.C.

mortgages aren't insured, mortgagors..ie who owes the loan..may be insured..and the mortgage lender would know if that was done..probably not...you can insure almost anything but now she has to go to his business associates/lenders etc to find facts..no law exempts nor eases payments to my knowledge..

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Answered on 12/11/10, 8:14 am

If there is credit life insurance on the mortgage (or any other debt, such as a credit card), then you need to notify the bank, ask for a credit life claim form and present a death certificate.

If there is no insurance, then she will need to make a decision as to whether or not the house is worth keeping. If they do want to stay, they can ask about a loan modification. It is optional on behalf of the financial institution. If they can't afford it, they should consider selling it. If it's upside down (owed more than it's worth) then they can ask for a short sale.

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Answered on 12/11/10, 8:17 am


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