Defeasance is a circumstance in which a debt or a bond is cancelled or voided due to the fact that the borrower has set aside enough money to pay it. Mortgage insurance can often be cancelled if defeasance takes place, since there is no more risk of the borrower defaulting. View Full Term
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David is a professional writer who specializes in making insurance, investing, and financial planning understandable. Before writing full-time, he worked as an insurance salesman and passed the Series 6 and CFP exams