"What is the likely course of events following the death of the home owner? "
Presumably, there is life cover for an amount which covers or exceeds the amount due on the mortgage. If yes, the mortgage is cleared from the proceeds of the policy on his death and the property passes with his estate to his next of kin/beneficiaries.
If there is no life cover, it then depends on whether the house is in negative equity. If no, the house is sold and, hopefully, the proceeds will cover the outstanding mortgage. The balance, if any , passes with his estate to his next of kin/beneficiaries.
If the house is in negative equity, the house is sold and the estate is left with a debt which may or may not be paid from any other assets in the estate. If there are no other assets, then the estate is insolvent and there is nothing for the bank to chase and the debt dies.
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