When you signed the mortgage loan agreement for the purchase of your house, the property you purchased remained as a guarantee of payment, that is, it acquired a lien (obligation that applies to the property to indicate that it is compromised), which must be canceled before the Public Registry of Property and Commerce when you finish paying the credit, so that your house is free of any commitment acquired, and finally your house is your house.
You should consider that the procedure has a cost that you will have to cover
Which will depend on the federative entity you are in and the notary public (the cost for the DF ranges between $ 6,000 pesos MX and $ 8,000 pesos MX).
You should also keep in mind that in order for the deeds to be delivered with the release of the mortgage registered in the Public Property Registry, you must wait between two and four months.
If you ask me what lien or mortgage release insurance you should take, if a simple one or a joint one, I would answer you with another question: what is your current life situation?
The truth, whenever you take a new credit, you make a transfer of mortgage debt or a credit card you should think about the lien release insurance . It is mandatory. And wonderful. I know a couple of cases worthy of film.
Let’s start with the definitions. They clarify the panorama.
Lien release insurance : it is a life insurance required by financial institutions to approve and disburse a loan, so that, in case of death or total and permanent disability of the debtor, the insurer responds for the current debt.
Risk : it is an event that occurs, that was not planned and that you did not want to happen. When it occurs, there is an economic need that the policy must cover.
Insured : This is you. The insurance company understands that you are a natural person and that with the policy you are seeking coverage and grant it to you.
Joint owner and joint insured : This could be you and your partner. Both are understood as natural persons, clients of a financial entity because they have requested a loan. Both run the same risks and it can happen to one or both at the same time. That’s why they ask for insurance and cover themselves with the policy.
Beneficiary : It is the bank with which you will do the mortgage loan business. The insurer understands that you are a client of the financial institution and will pay you at the time when you cannot cover it due to death or total and permanent disability of the debtor.
Which of the two: simple or joint
What is your current life situation?
So, your marital status is: single or married?
Suppose you do not have a current marital partnership and you have no children. You bought a apartment. You are the only business owner. Your parents live and have no debts. If something happened to you, who would assume your debts?
A simple or individual lien release insurance would cover 100% of the debt on the day of the accident. That value would be canceled by the insurer to the bank (beneficiary) and your family would not have to assume any responsibility.
If you have a partner and both decide to combine the income in the loan application or the transfer of the mortgage loan, they must take joint insurance . In this case, the claims must be viewed as follows:
- Both die or have total and permanent disability due to illness or accident: the insurer will be responsible for what is owed to the bank, that is, all pending installments of the schedule.
- One of the two dies or has total and permanent disability: the insurance responds by this part, that is, it covers the percentage corresponding to the joint insured.
It is likely that even with a current marital partnership, you decide to buy a property and apply for the mortgage loan only in your name. In that case, you would opt for simple relief insurance. However, you must be clear that one thing is the effect of insurance and another is that of the law. In the event of an accident, your partner has rights over the assets and obligations over the debts. There is no legal consultation, don’t you think?