Who takes over the debt when a mortgage holder dies?

When a family member dies, the last thing you want is to deal with your outstanding financial obligations.

In the case of debts, some could even continue active and generate interest.

But what if the person was a mortgage holder?

Although for some time

in the country, there are many Argentines who in previous years managed to access this type of loan to

.

However, these agreements, which are settled in the long term,

that raises

.

What is and how does a mortgage work?

When a mortgage is contracted, the main guarantee is the property, but the most important thing for the bank is that

and comply with the payments.

The mortgages are settled in the long term and have a lot of fine print that generate doubts.

Photo: File.

The amount of that loan is getting smaller, because

 that are executed under

 such as the French (fixed installments) and the German (staggered installments: the first is the most expensive and goes down month by month). .

In this sense,

of the person applying for the loan, which is more related to their ability to pay in terms of their income and not so much to the assets they own.

Now, this income exists while the person lives, but

and, on the contrary, must be paid in full.

It is then when doubts arise and when various possibilities open up.

What happens when a mortgage holder dies?

When a person dies,

and are included in the estate.

So, in the event of death, the mortgage

.

Specifically, the mortgage is constituted as a community of goods, until the moment in which the division of the inheritance is agreed.

In this case, the context is different

, or if it had two holders and only one of them dies.

In any of the scenarios,

and the mortgage conditions initially agreed with the bank are maintained.

Both interest and expenses and expiration terms.

What happens when there are two mortgage holders and one dies

If the mortgage has 

, as is the

, it is convenient to know that

.

This means that the holders must answer for the entire debt, not only for their corresponding part.

At this juncture, it will depend on whether the co-owner is the only heir or if there are more people in the estate.

If the

 -such as a spouse without children-, the entire mortgage

, who would have full ownership of the home.

The bank should be notified of the death and the

.

On the contrary, if the deceased had more heirs than the co-owner of the mortgage, his corresponding part

, both the spouse and the children.

In this circumstance,

.

Many banks offer the possibility of taking out life insurance as part of the mortgage process.

Photo Shutterstock

Life insurance and mortgage

As explained 

 by the president of the Morón Bar Association and insurance specialist, Dr.

, is that generally

, which is a debt for a lot of money, so

on the property.

However, he explained that to

many banks offer the possibility of

as part of the mortgage process.

Thus, if the holder of a credit dies, the insurance will assume part of the debt or its entirety, depending on the conditions agreed with the entity.

"That is to say that both

, but

with what is called 'insurance on balances, that is, on what remains to be paid in case the debtor dies,' Frega said.

In the event that there is a

, the specialist explained that the insurance will be taken over the life of the insured for the benefit of the creditor, which can be a bank or an individual, but

.

Meanwhile, if it is a 

, where the real property right belongs to several people, the insurance can be made on one of the spouses or on both.

"If it was

, what was detailed above will apply, when the mortgage is in the name of a single debtor. In the event that the

 the insurance will be applied proportionally on the part that falls to one of them," said Frega.

"

, which means that it is taken by only one but with the agreement of the other for the purpose of taking out the mortgage, if the latter dies, the life insurance will work and settle

" , he stressed.

In this sense, Frega recommended that before taking out a mortgage, in the case of a couple or married couple, it is advisable that the

be contracted

.

Or in the case of a couple, plus the father or mother of one of them, then the insurance should include all three, and that it be each of them for the entirety.

Although this

, if all are insured for the total debt, in the event of the death of one,

the mortgage is canceled and therefore also the credit.

LN

look also

Can an inheritance be rejected?

4 reasons why you should not accept it and how to do it

How to find out what data the AFIP has about your assets, income, expenses and debts

Divorce: what happens to the alimony when the mother earns more than the father

Earn money traveling: how to earn dollars by bringing products from abroad to local buyers

Make a will or donate while you are alive: how do they differ and how much does each cost?