| A mortgage indemnity allows a mortgage lender to recover the costs incurred from a repossession by pursuing the former owner for the difference between what the property was sold for and what the former owner still owes under the mortgage. In effect, someone unable to pay a mortgage will see the property repossessed and sold, after which the lender can still chase the mortgagor for a shortfall if the amount raised by the sale does not cover the debt. MIGs have had a lot of bad publicity, and are not as common as they used to be, with some lenders abandoning them altogether.
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