The mortgage credit It is a long-term commitment, where infinite eventualities can arise for the borrower, such as his death, during the active financing period, so it is important to know what to do to pay off the debt.
According to Morgana, a digital platform for mortgage loans, the mortgage It is a loan full of guarantees, so much so that the bank ensures the payment of the debt and in the event of the debtor’s death, it is no exception.
For Juan Carlos Cué, Legal Chief of Morgana, within the monthly payment that is paid to the bank in a credit Of this type, life insurance is also paid.
“When you take out this financial product, part of what you pay in the monthly payment is a life insurance, in which, in colloquial terms, the bank is named beneficiary. Therefore, in case the owner of the credit, the bank collects the insurance and the debt is released, as long as you are up to date with your payments. What happens if the owner dies? credit mutual? The insurance pays the bank, “Cué said.
However, it is necessary that the heir or the beneficiary present to the bank the death certificate attesting the death of the debtor and in the case of several heirs, this procedure corresponds to the executor of the will.
“This does not happen automatically, it involves a procedure in front of the bank, the presentation of a death certificate and having to deal with the bureaucracy of banking procedures. The most important thing to keep in mind is that there are only two people who they will be able to carry out this procedure.: the heir and the beneficiary. If there are multiple heirs, the person who has been appointed the executor must carry out the procedure, “said the manager Morgana.
The company explained the difference between heir and beneficiary:
- Heir: is the person to whom all the assets of the deceased correspond by provision of law or by designation in the will.
- Beneficiary: is the person designated as such in the banking format, at the time of opening the account.
For Morgana it is a recommendation and good practice to designate as the beneficiary the person who has been named heir in the will.
What happens next?
Once the death certificate has been presented, the heir or beneficiary will have to apply for it Letter of proof of no debtwhich is the document that proves that the bank is no longer due, as well as the Mortgage cancellation letter addressed to a notary.
Once the notary has received the deed, prepares the deed, collects the signatures of the legal representatives of the bank and sends it to be registered in the Public Register of Assets with the real sheet corresponding to the property and once registered, it is made the first testimony of the act to get out so free from the encumbrance of art mutual.
To take possession of it after all these procedures, Morgana’s lawyer explained that it is still necessary to perform two acts, which are carried out before a judge or a notary:
1. Designation of the heirs and acceptance of the inheritance. Where basically the heirs say they want the property to be left to them.
2. Award of the inheritance. With this deed, the name of the heir remains the owner of the property once the property acquisition tax.
Once these acts are celebrated, with all the related insurance and tax payments, the heirs can enjoy their home.
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