Inherited house but with debt

mrsbudget

Hi, why dont you get a loan then pay it up while you are renting the place to someone else. Has your mom not got any insurance to cover her debts?

Phantom_Avenger

I think there WAS some insurance, I'll have to find out but I can't see the CAB 'til Oct 6th

BitterAndTwisted

You say there's £5k of debt secured against the property but £10k of debt in total. If that £5k is unsecured it may not have to paid out of the estate. You may only have to raise a £5k loan which could be paid off by living in the house and taking in a lodger. I dunno how doing that might affect your entitlement to IB and DLA but it would definitely be worth looking into.

Gorgeous_George

Get a mortgage.

Usually the minimum (mortgage) borrowing is £25K so you will need to invest the surplus, overpay (where possible) or seek an offset mortgage. The secured borrowing MUST either be repaid or arrangements set in place such that you take on the secured debt. The unsecured debt probably needs to be repaid (unless it had some insurance against death).

GG

DVardysShadow

henpecked1 wrote: »

you cant inherit debt.

Neither can you take more out of an estate than is left after the debt is paid.

Phantom_Avenger

I'd have to pay poll tax I think. I'm allowed to make 80 quid a week

zarazara

Cant you take out a personal loan to pay off the debt? or sell some of your own belongings to pay off the debt. Then you can move into the house.

Phantom_Avenger

I'm living there now! My belongings aren't worth much

FATBALLZ

Get a loan or sell the house.

rosyw

Firstly, sorry to hear of your loss.
I'm in a similar position, in my case my OH passed away and I inherited his 50% of the house, AFTER his debts were cleared. It may be an idea to see if there was paymemt protection insurance on the secured debt, that would pay it off in the event of your mothers death? Also has an executor been appointed, if so they should speak to the creditors to try to get the unsecured debts written off, I have managed to do this with several , and as has been pointed out you must check to see if she had any life insurance that would help. The main thing to remember is that these are NOT your debts, but that of your late mother, so do try not to get too worried by it all, although I know from experience how hard that can be when you are being pressed for payment. If the house is your home, and always has been, I seriously doubt whether any of the creditors would insist on it being sold to clear the debts, the worst they could do would be to get a charge put on it. You don't have to pay any of these debts out of your own pockets, please don't let anyone tell you otherwise.