who does a mortage die with?

liverpool321

the mortgage was in my step father and mothers name my step father passed away 2 years ago and my mother is very very sick more than likely wont make it to the new year they have a mortgage on the house of about 50,000 will i have to pay that? im 19 and receiving carers allowance if that makes a difference.

wexie

liverpool321 wrote: »

the mortgage was in my step father and mothers name my step father passed away 2 years ago and my mother is very very sick more than likely wont make it to the new year they have a mortgage on the house of about 50,000 will i have to pay that? im 19 and receiving carers allowance if that makes a difference.

You'd have to check the paper work but most (if not all mortgages) will be coupled with some form of life insurance that will clear off the mortgage (and then some maybe) when it pays out.

Although I was under the impression that if the mortgage is under 2 names then both of those people should be covered by the insurance. Which would mean that the mortgage would have been cleared when your stepfather passed away.

At least that's how I/we have always had it setup so that if anything happens to either one of us the other wont have to worry about the mortgage.

Sorry if that's not a very clear cut answer.

liverpool321

forgot to mention the life insurance got cancelled when my step father died because he commited suicide but hadnt listed he had depression and then when it all got sorted my mam had just found out she had cancer so they wouldnt cover her

km79

wexie wrote: »

You'd have to check the paper work but most (if not all mortgages) will be coupled with some form of life insurance that will clear off the mortgage (and then some maybe) when it pays out.

Although I was under the impression that if the mortgage is under 2 names then both of those people should be covered by the insurance. Which would mean that the mortgage would have been cleared when your stepfather passed away.

At least that's how I/we have always had it setup so that if anything happens to either one of us the other wont have to worry about the mortgage.

Sorry if that's not a very clear cut answer.

That's the way ours is as well. Mortgage cleared upon first persons death and a lump sum of same amount. Maybe the mortgage was only in your mothers name ?
Also make sure she has a will ? It is probably a good idea to get the paperwork together and talk to a solicitor or if you cant afford that maybe a family friend ?
Sorry just seen you posted in the mean time. I don't want to speculate on who is liable for the balance of the mortgage as I would not know for sure. Good luck with everything

K.Flyer

The best thing you could do would be to make a general enquiry to the Bank that holds the Mortgage. You don't have to give them any names or details if you dont want to.
Just ask if a property is left with a Mortgage after a person dies and there is no mortgage protection insurance what happens to the property.
As far as I know, from a recent family discussion, the monthly amounts will still have to be paid by someone otherwise the mortgage will go into arrears and the banks could go for re-possesion.
Presuming the property is worth a lot more than the 50,000 owed to the bank, then the best thing is to get it sold afterwards as quickly as possible.

killers1

If both parties to a mortgage die without life cover the debt becomes a burden on their estate. If you are the sole beneficiary of their assets then your options are to either sell the property to repay the mortgage or take out a mortgage on the property in your name to repay the remaining mortgage. If you have no income to allow you to qualify for a mortgage of the amount required then selling the property to repay the mortgage might be the only course of action open to you. As the sole beneficiary of their will you would be entitled to any profit from the sale..

liverpool321

thanks everyone for your help looks like ill be sellin my house

locustfurnace

liverpool321 wrote: »

thanks everyone for your help looks like ill be sellin my house

I hope this doesn't come across as insensitive but I mean it in the best possible way, but maybe selling the house might be the best for you, with both your step father and mother dying and you still of a young age any profit left over from clearing debts could be put towards travelling and seeing a bit of the world or moving to a new area starting fresh and building a new life for yourself.

Qualitymark

Will there be inheritance tax?

I wouldn't go rushing to ask the bank anything; perhaps you'd be better to go to Mabs and Citizen's Advice.

Would it be possible to share the house and allow the rent to pay the mortgage? I hope you'll be able to get work that will also pay some of it.

StillWaters

I'm very sorry about your step dad and mother. This must be a very tough time for you.

You do not have to make any immediate decisions, the estate will have to go to probate and this could take some time. You should be entitled to free legal aid. Talk to FLAC when the time comes.