What is Lenders Mortgage Insurance or Mortgagee Insurance?
Mortgage/Mortgagee Insurance is designed to protect the lender in cases of a forced sale of a security that may not realize sufficient value at auction to clear the outstanding debt. It is required, in most cases, when the amount borrowed in greater than 80% of the total purchase price. It protects the Lender, not the borrower, and the Insurance Company will endeavour to claim against the borrower for any loss involved.
Related Questions
- Once a bankruptcy is filed by the mortgagee, what are the basic steps for a lender in pursuing the mortgaged collateral or obtaining recovery of the loan?
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