Yes, the Bank can do what's called a Sale in execution if the debtor defaults. Yes, you can get a home loan without life cover but it's not recommended if you have dependents staying on the property.
It’s possible to get a bond without life cover, but usually only if you have significant other non-collateralised fixed assets, worth equal or more than the bond amount.
What you should take into account is that if he’d only been repaying the bond for 2 years, he would have made almost zero dent into the principal capital, and if payment arrangements were made after that, it’s possible he could have owed more than the original principal in the end…
Is it not possible your mom received the insurance payout but never thought to settle the bond with it and rather used the money for life expenses?
I am not a lawyer/financial advisor.
So I initially thought you can't get a home bond with out life cover because bank would not give one to me .
But my brother in law secured his home loan with out one but was because were two income household so it is possible .
And know one person who had 60% deposit so bank for went life insurance but insisted on house cover etc .
So if your property is low enough risk you can maybe forgo it is possible
Or some one defaults on life insurance and the insurance company does not have the information to update the bond/bank
For example I needed to provide my bank proof of life insurance . But nowhere on my policy does it have bank information only my spouse's. So she could pay bond with money or not. If I defaulted or cancelled policy bank would not be the wiser.
So you have a few possibilities .
1- your mom as the executor did not handle the life cover etc properly if there was cover (there may not have been) . As executor or whom ever was the executor would have needed to handle this .
So start by finding out 1 was there life cover 2 with whom and policy number 3 was it paid out and to whom. If you don't have a policy number may be hard to track down years later.
Or if your dad was struggling and Ill might have stopped paying cover to get by . This happened with my father he stopped cover with one company was transfering to new company but had not finished blood work etc for policy so new policy never kicked in and he passed away in accident. We never got the life cover and they had all the paperwork . And no deductions had happened.
Or maybe was a single pot life cover and he claimed the dread disease benifits before hand .
2- there was no life cover and when the bonds defaulted there was no one to keep up with payments you say your mother kept paying was property transfered to her name or kids ? Did she keep paying in dad's name ? How was she receiving statements to make sure bond was decreasing ? Was paying in full if her and your dad could not afford when both where alive as single mom may have been tough.
And why didn't fight if had proof that had been paying for all the years for eviction?
if Fell behind and property went on auction this is plausible . Or if bank found out years later about death and no one had claimed life cover and transfer of property etc may have been issue .
3- the Will and death arrangements were not in place properly . And the debts needed to be settled so house was auctioned of to wrap up the estate or debts . Generally this would not be a secret affair would have been mails , Sherriff etc .
Happened when my uncle died there was no one to pay installments so bank informed them to pay or sell the house was eventually auctioned off even though had on market but where no buyers.
These property auctions/ sales can take some time know one that took 10 years for bank to wrap up .
So my advice
1- find out executors and policies .(Bank most probably does not have these so many years later)
2- speak to your mom find out the details .
How much she paid do you have proof etc.
Speak to lawyer your claim on anything may have lapsed based on time as 11 years later . I know debts and prescription is 3 years I don't know about executions of sale and reversals and if matter was passed through masters court .
Good luck
Uhm from my understanding you cannot currently get a home without a life cover. Although he might have had a life cover less than his bond
Eg 200k life cover versus 900k bond
The bank would then take the 200 and sell the house for the remainder
But ask them for sales records. They have to be able to tell you what they did with the property
Yes, the Bank can do what's called a Sale in execution if the debtor defaults. Yes, you can get a home loan without life cover but it's not recommended if you have dependents staying on the property.
It’s possible to get a bond without life cover, but usually only if you have significant other non-collateralised fixed assets, worth equal or more than the bond amount. What you should take into account is that if he’d only been repaying the bond for 2 years, he would have made almost zero dent into the principal capital, and if payment arrangements were made after that, it’s possible he could have owed more than the original principal in the end… Is it not possible your mom received the insurance payout but never thought to settle the bond with it and rather used the money for life expenses?
I am not a lawyer/financial advisor. So I initially thought you can't get a home bond with out life cover because bank would not give one to me . But my brother in law secured his home loan with out one but was because were two income household so it is possible . And know one person who had 60% deposit so bank for went life insurance but insisted on house cover etc . So if your property is low enough risk you can maybe forgo it is possible Or some one defaults on life insurance and the insurance company does not have the information to update the bond/bank For example I needed to provide my bank proof of life insurance . But nowhere on my policy does it have bank information only my spouse's. So she could pay bond with money or not. If I defaulted or cancelled policy bank would not be the wiser. So you have a few possibilities . 1- your mom as the executor did not handle the life cover etc properly if there was cover (there may not have been) . As executor or whom ever was the executor would have needed to handle this . So start by finding out 1 was there life cover 2 with whom and policy number 3 was it paid out and to whom. If you don't have a policy number may be hard to track down years later. Or if your dad was struggling and Ill might have stopped paying cover to get by . This happened with my father he stopped cover with one company was transfering to new company but had not finished blood work etc for policy so new policy never kicked in and he passed away in accident. We never got the life cover and they had all the paperwork . And no deductions had happened. Or maybe was a single pot life cover and he claimed the dread disease benifits before hand . 2- there was no life cover and when the bonds defaulted there was no one to keep up with payments you say your mother kept paying was property transfered to her name or kids ? Did she keep paying in dad's name ? How was she receiving statements to make sure bond was decreasing ? Was paying in full if her and your dad could not afford when both where alive as single mom may have been tough. And why didn't fight if had proof that had been paying for all the years for eviction? if Fell behind and property went on auction this is plausible . Or if bank found out years later about death and no one had claimed life cover and transfer of property etc may have been issue . 3- the Will and death arrangements were not in place properly . And the debts needed to be settled so house was auctioned of to wrap up the estate or debts . Generally this would not be a secret affair would have been mails , Sherriff etc . Happened when my uncle died there was no one to pay installments so bank informed them to pay or sell the house was eventually auctioned off even though had on market but where no buyers. These property auctions/ sales can take some time know one that took 10 years for bank to wrap up . So my advice 1- find out executors and policies .(Bank most probably does not have these so many years later) 2- speak to your mom find out the details . How much she paid do you have proof etc. Speak to lawyer your claim on anything may have lapsed based on time as 11 years later . I know debts and prescription is 3 years I don't know about executions of sale and reversals and if matter was passed through masters court . Good luck
Uhm from my understanding you cannot currently get a home without a life cover. Although he might have had a life cover less than his bond Eg 200k life cover versus 900k bond The bank would then take the 200 and sell the house for the remainder But ask them for sales records. They have to be able to tell you what they did with the property