Mortgage Arrears/Executor of the Estate

getmore4less

The very first thing to do is establish if the estate is solvent.

If not and not to late consider walking away from it.

You do not have to administer an estate just because you are the named executor.

if there is nothing left in the estate there is usualy little point in bothering.


let th mortgage company do the job

getmore4less

Mojisola wrote: »

Did you take advice before paying off the other debts because the mortgage should have taken priority -
www.bereavementadvice.org/probate-and-other-legal-procedures/insolventestates.php

The mortgage only takes priority upto the values of the assets used as security any shortfall becomes part of the unsecured pool.

It is not a good idea to pay anything till it is clear the estate is solvent.

Thrugelmir

getmore4less wrote: »

You do not have to administer an estate just because you are the named executor.

You cannot start the process as executor (i.e. make selective distributions) then walk away. Executorship is for for life. So needs to be conducted in a proper manner. Hence why many people co-appoint a solicitor.

getmore4less

Thrugelmir wrote: »

You cannot start the process as executor (i.e. make selective distributions) then walk away. Executorship is for for life. So needs to be conducted in a proper manner. Hence why many people co-appoint a solicitor.

Thats why I said "if not too late" too many people dive in without checking, thinking they have to do the job because they are named in the will or next of kin.

Always make sure an estate is solvent and there is something to gain before getting involved.

It is not clear yet that there is going to be anything left in this one.

holly_hobby

That would be a good shout, if the OP had not conducted any executor duties, as they have, they are deemed to have accepted office, and thereby now can't resign. As such they will remain responsible for carrying out their duties for life (aka until the estate has been fully settled).

As executors remain responsible for carrying out their duties for the duration, most peeps whom are named as executor, will often choose to engage a probate Solicitor to act for them (indeed this recently occured in my own family).

So, as I say, unfortunately as it appears some exeuctor duties have already been completed by the OP, they are now prevented from resigning their duties. (which would be notification to the probate office, and completion & rtn of their resignation declaration.

If they follow the advice given here and don't accept any TOE exercise initiated by the lender (whom are being unscrupulous, and I bet if asked, won't confirm their current arrears and TOE request in writing), then they should be ok.

Hope this helps

Holly

PS - gist of post crossed with Thurls - but we're saying the same thing.

getmore4less

If they have been paying off other debts before establishing that the mortgage debt can be cleared then that was not sensible they may allready be liable for some of the shortfall if these debt payments have come from funds in the estate.

Without probate where have the funds come from to pay off the creditors?

roddo2013

getmore4less wrote: »

If they have been paying off other debts before establishing that the mortgage debt can be cleared then that was not sensible they may allready be liable for some of the shortfall if these debt payments have come from funds in the estate.

Without probate where have the funds come from to pay off the creditors?

May have been some confusion in regards to the other creditors. We're talking a few bills in the £100's that I have settled with my own money, expecting to recieve at least something from the estate. (I was certain that the arrears were less than they are, I know it wasn't the best idea to do this)

There are two creditors other than the lender-HMRC, and a loan from a friend. It is my understanding that they should be dealt with in that order after the lender.

Thanks

ValHaller

roddo2013 wrote: »

May have been some confusion in regards to the other creditors. We're talking a few bills in the £100's that I have settled with my own money, expecting to recieve at least something from the estate. (I was certain that the arrears were less than they are, I know it wasn't the best idea to do this)

OK, that keeps you out of trouble with the mortgage lender for the moment AFAICS. Your are now a creditor of the estate. When it comes to being reimbursed, make sure that you do not reimburse yourself a higher percentage than anyone else!

getmore4less

roddo2013 wrote: »

May have been some confusion in regards to the other creditors. We're talking a few bills in the £100's that I have settled with my own money, expecting to recieve at least something from the estate. (I was certain that the arrears were less than they are, I know it wasn't the best idea to do this)

There are two creditors other than the lender-HMRC, and a loan from a friend. It is my understanding that they should be dealt with in that order after the lender.

Thanks

Is the estate solvent?

If there is a shortfall on the house sale the lender joins the other unsecured for the rest of their money.

roddo2013

getmore4less wrote: »

Is the estate solvent?

If there is a shortfall on the house sale the lender joins the other unsecured for the rest of their money.

When all creditors are considered the estate would be insolvent, there would probably be a £2k shortfall on the mortgage/arrears if I sold the house at the price I've been offered, and then the two other creditors remaining.