What do you do when your phone rings and you’re informed that the borrower in a mortgage that you placed, has died? Here are a couple of tips if the deal was placed with a MIC (this may be different that what you do for a bank lender):
- Communicate: Let the lender know what has happened
- Payments: Confirm that the lender can continue to make payments OR make alternative payment arrangements.
- Property Taxes: If its near tax time, let the lender know that the taxes will be paid.
- Fire Insurance: If the property is going to be vacant, make sure the terms of the policy with regard to maintenance and regular property inspections are followed.
- Strata Fees: If the property is a condo or strata-titled, confirm for the lender that the monthly fees will continue to be made.
- Renewal: If it’s close to renewal time, ask the lender what their policy is. If they can’t give a written renewal, they may be able to confirm that a month-to-month arrangement will be satisfactory as long as payments are made.
- Exit: Confirm for the lender what the exit plan is.
If the MIC lender knows that these points have all been addressed satisfactorily, the survivors of the deceased borrower will have peace of mind that they have the time and flexibility to wind up the estate in an orderly fashion.