tied into mortgage until aug 07

paul2louise

My brother recently died unexpectedly. he had an interest only mortgage with GMAC/RFC
we are trying to sell his house but dont know ifwe would have to pay the mortgage release fee of 5k as he was tied in until aug 07. Does anyone have any advice. My dad is still paying the mortage as he didnt have any cover. Would the company still make us pay this. Everyone seems to make things so difficult at this hard time.

please can anyone offer any help

louise

canny_yorkshireman_2

I would suspect that the fee will be levied even in these unfortunate circumstances banks tend not to have moral or charitable managers so expect to pay a letter outlining the circumstances may help but don't hold yer breath also did he not have any life cover or policies that would eleviate the debt as his employer may have a death in benifit scheme.
hth

cattie

No advice, but I just wanted to say how sorry I am about your brother & wish your family well. An unexpected death is always harder to bear.

mishkanorman

my brother in law passed away not so long ago so my thoughts are with you, he also had a interest only mortgage, I was pretty sure that with these policies you had to have life cover, is this not the case ?

I also thought that with this sort of thing as the mortage was held by your brother and he is now deceased the mortgage was stopped. this certainly happened with him all interest and payments were put on hold until his estate was finalised. He was with nationwide. I always presumed that as the contract was held with him although the debt had to be cleared penalties dont apply.

One thing my sister found to do was check everything from things you wouldnt expect, like life cover on your credit card (some offer this) to a company life policy ( a years wages paid on death )

hope things go as smoothly as poss at such a hard time


mishka

stanmoresaver

i think it would be totally wrong it they did uphold this penalty- so pm me if you would like me to make enquieries for you!

paul2louise

thank you for your replies. We will geta death in service but not until we have had his inquest and have a death certificate. i think he had a bit of money issues and had taken an interest only mortgage short term probably with the intention of setting up life cover, isa or other investment later. As he never expected to go he probably didnt think of what could happen. all i know is my dad is paying the mortgage at the moment and if we sell it he may have to pay this release figure. any debts will have to come from his estate but as no death certifcate yet no money has become available for any of this. We are still waiting for an inquest and he died in december.

thank you for all your support

louise

dwsjarcmcd

paul2louise
Despite some comments to the contrary, I think that GMAC RFC will not apply these charges. This type of thing does, sadly happen and most lenders I know will apply these charges in every circumstance, except death.

You, or your dad needs to speak to GMAC RFC and explain what the circumstances are.

I really hope I am right.

stanmoresaver

You have a PM- i have spoken to my contact at GMAC


SS

emmaHarris_2

What was the outcome to this issue and very sad events?

paul2louise

my dad contacted the company and i think they will waver the fee in these circumstances. Sorry i didnt reply erlier but new problems replace the old ones. Now i have my own issues at work with a unsympathetic boss who thinks its about time i got my head together and sorts myself out.

thanks for taking the time to care

Louise

emmaHarris_2

Your very kind to have come back at all and thank you for this and the good news. I hope you too are able to get through this...:) Wishing you all the very best and future happiness:) EmmaH