alternate settlement option: An option a mortgage insurer can exercise in settling a claim in which it pays the entire amount of the claim, including applicable legal, foreclosure, and repossession expenses, generally before the home goes to foreclosure. The insurer exercising this option has no possibility of recovery even if the subsequent sale of the home yields proceeds in excess of the exposure of the lender or investor.
Read more to view related video clips to this insurance terminology.
[tubepress mode=’tag’ tagValue=’Alternate Settlement Option insurance’]