And are you seeking personal financing (your name on the loan) or commercial (LLC on loan)?  

The new mtg then goes into default and the lender seeks to foreclosure it. 

I would not seek to go 50/50 on the first deal. 

I would sit down with your CPA and seek to fully understand the tax ramifications of your untimely death.

That is typically a good starting point.Before you start your search, it is important to know what you are seeking. 

No fees, no penalties, no default interest, nothing. 

Then in cases like this going forward all you'll need to do is tell them you're sorry for their luck, fix the issue then encourage them to seek reimbursement from their insurance provider.

I posted a similar thread topic not long ago about seeking desktop appraisals.  

Again, LTV will be restricted to 50% - 70% and the rate will be high (figure 11% - 16%) but you can pull some cash-out and you'll be on 12-24 month term, with hopefully no prepayment penalty.

“If people have those requests that they want to make,they can send them in and I will put them on the list,” said Auchterlonie.If some filing and payment deadlines aren’t extended, taxpayers may still be able to argue that thereasonable cause exception applies to any late-payment or late-filing penalties, said Greenaway.