When is a mortgage closed?

tro127

Hi everyone,

Hopefully someone can help me. I will try and give you a quick overview.

My brother has had a really bad time of things. Last year he was diagnosed with cancer and had a course of chemo which thankfully seems to have worked. The silver lining was that his insurance paid out so he was able to clear the mortgage. Just before the last session of chemo his lovely wife told him she wanted a separation which was a nice way of kicking him while he was down. She moved out to her parents before eventually agreeing to give it another go and moved back in. Fast forward a few weeks and she again says its over but this time refuses to move out. My brother ends up moving out as he can’t handle living there with her.

He is now having to look to rent a property in order that he can have his kids every other week with her refusing to sell the house. When they got back together she also decided to give up work so has no way of buying him out of the property.

Just this week it has now come out that she has been having affairs other the last 18months including with my brothers best friend so he has been left completed exhausted and I’m obviously worried about his mental state.

This whole situation has left him penniless and I was just wondering if there was anyway he could reclaim the mortgage payoff as an over payment or if the insurance payout can be rightfully claimed as his.

I feel completely helpless so if anyone can provide even the smallest bit of advice it would be hugely appreciated.

Thanks

samtoby

I can't offer any advice, but what a terrible situation hugs

maninthestreet

As the mortgage has, apparently been paid off, what is your question???

tro127

I dont really know. Just feel desperate for him. Wasn't sure if you could reverse a decision like paying off the mortgage. Maybe that as he was going through treatment he wasnt in a suitable state of mind to make that choice?

maninthestreet

How will that change the situation with his wife??

tro127

Given that she is refusing to sell the house means that she is happy to stay there sitting on all the equity. If he hadnt paid the mortgage off he could have just given her 50% and walked away knowing he could start his life again.

hillcats

All the time that the mortgage has money owed then he could not just walk away from it, as he would always remain jointly liable if the ex defaulted.
The only possible options I can see are to sell up and then split the equity or she re-mortgages the property when earning enough to cover it.
I can't imagine the lender would return the insurance payout, but I don't know. Good luck sorting this one out.

The_J

I'm afraid there is nothing he can do, he paid off the mortgage which presumably is what the policy was designed to do.

It sounds like his !!!!! of a wife is sticking around to claim half of the payout. She would probably still be entitled to this had he not paid off the mortgage, the amount of which she would be entitled to would be up to the courts or sorted in arbitration. It will depend on children etc. who gets what.

Had he got divorced before he got ill, kept his policy, and then got the payout it would be different but hindsight is a wonderful thing.

They need to get divorced and sort out the finances.

tro127

Thanks for the replies.

I know he would be jointly liable if there was a mortgage, would just mean that he would be in a better position to get the house sold as she wouldnt be able to sit in it knowing it was all paid off.

Think he has accepted that although the insurance payout was on his policy to protect him for the future she is going to get her hands on 50% so its more about helping him get his own place. She is not even willing to entertain the idea of selling.

The_J

I appreciate he may not be up for the fight given his weakened condition so you need to be there for him. Personally, I'd be moving back into the house and ruining her life.

Thrugelmir

With kids involved she''ll be allowed to remain in situ until they've grown up.

Having said that. Could she downsize. Thereby releasing some of the equity?