The bank loses from the deal..... how?
They live, mortgage is paid.
They die, the house is sold, mortgage is paid off.
They default, the house goes to the bank.
The bank can not lose.
>>The bank can not lose.
Banks lose money all the time when they have to foreclose - or maybe you don’t to remember what happened in 2008?
I bet a lot of the bankers who gave out big commercial loans on property that is now worth 25% of what the mortgage balance is are getting pretty nervous.