Any ideas? Following a bereavement...

willing2learn_3

Hi everyone

I'm going to read more on this particular forum later but for the time being i'm going to post up my challenge and see if anyone can help.

The situation is that my father died suddenly and unexpectedly 3 months ago. He had a mortgage of £40,000 but also a loan secured against the house of £80,000 (these are approximate figures but i can get the exact figures if necessary).

For some reason the loan secured on the house only had a 3 year insurance policy. From my understanding (again i can find out if needed) my dad couldn't renew that policy. He didn't. It ran out in June, he died in september. I hasten to add that although dad seemed swamped and overwhelmed in the last year, he was not always like this and i think it was a sign of him being ill, but no one knew of course. My mother wasn't really awaare of the situation as he did most things for her.

So basically the situation is two mortgages without insurance cover. My mother cannot afford the monthly repayments. Both companies are allowing her to pay interest only until she can sell the house.

Meanwhile, i am prepared to move back in with her if we could remortgage, but with a view to maybe selling the house at a later stage. I don't think i would want to live with her for longer than two years.

However my income is currenlty approx £13,000 pa. The initial mortgage company said they would consider doing this if we could have a third party, who earns over £18,000 to also come on the mortgage. We may have someone, but then again they may not wish to....i don't know at this stage.

This would allow us to have a mortgage of £120,000 to cover the original mortgage and the loan. The house has been valued at £210,000 although that was before the credit crunch hit, so a conservative estimate at the moment would be £180,000.

Anyne have any experience, expertise, thoughts? I know it may be that my mother has to sell but i have to exhaust every other possibility first as moving for her will be even more trauma then what has happened. At the same time i am aware that we would have to think carefully about any remortgage.

I'm obviously looking for better work but it's not easy when you are having to do it under pressure. I could get a remortgage with my mother, without a third person if i was earning £20,000. I am well qualified to ultimately find better work but maybe not in the time i've got.

Thanks for your time. :-)

Senior_Paper_Monitor

There are a number of questions needing to be answered here before any sensible ideas can be given.....

Your and your mum's ages (are you married - do you have any dependents)?

Are there any siblings (for you or your mum) or people who your mum wishes to benefit from the estate in the event of her death?

What income/savings does your mum have?

Do either of you have any other financial liabilities (loans, credit cards etc)?

Are there any insurance or pension benefits due to your mum as a result of your dad's death?

Is there a 'real reason' why moving (and downsizing) would be so terrible - it may just be your thought process is 'less than analytical' after the trauma of losing your dad/husband ........ it is vital that you consider your mum's long term financial stability at this time, however difficult that may be at the moment.

Bearing in mind the last comment, I would recommend finding a good adviser who will carefully talk through your complete set of circumstances, research appropriate options and help you reach a considered decision.

grogdog

i think the main issue is finding out about the insurance, you say the extra 80k was only insured for 3 years! what about the other 40? also i know you did say your dad died suddenly but was his condition of death diagnosed as something that originated while still under cover?

willing2learn_3

Only just noticed your posts, thanks! Senior Paper Monitor....it's very hard to get any financial adviser to think beyond 'routine' things. One has told me to check whether my parents were mis sold that insurance and to contact a company that would look into that on a no win no fee basis....he didn't seem to want to look into it for us even though he would have been paid....what's more he didn't seem to know the details about PPI mis selling and at one point was talking about the whole loan being refunded if it was mis-sold. I think that's pie in the sky.....i've learn't more by reading the threads here.

I think it might be possible that my parents were mis-sold their PPI, then again it might not. I won't know unless i make a claim on my mother's behalf and see if someone can investigate for her. There is not enough detailed information anywhere for me to use to assess the paperwork i have in front of me.

Things have moved on since i started this thread. My mother is looking to see if the local mortgage rescue scheme is a viable option. The council thinks it is. Meanwhile her house is on the market. I am no longer looking to re-mortgage with her.

thoughts are welcome, thanks :-)

willing2learn_3

grogdog wrote: »

i think the main issue is finding out about the insurance, you say the extra 80k was only insured for 3 years! what about the other 40? also i know you did say your dad died suddenly but was his condition of death diagnosed as something that originated while still under cover?

He was described by his GP as in excellent health until he died.

However he didn't see his GP. I know he was not himself for 18 months leading up to his death. No one else could see it though. Also it didn't stop him working. Nothing but death would stop my dad from working. Everyone around us thought he was dynamic and full of eneergy. However i could see a change in him, it's just that he was still very hyper, always was.

Don't know what i can do in this regard. He died from heart disease, but until the day of his heart attack it wasn't known that he had it.