Critically Ill Parent - Mortgage?

Dale_02

Hi guys,

Well, about a month ago my Mother has been diagnosed with cancer. After reading up on the cancer she has and the stage it's at, unfortunately it looks like she will only have around a year to live.

I'm 27 and still live with my parents (Mum and Step Dad) and I'm a little concerned about what's going to happen when she passes away.
My Mum has always dealt with all the finances, my Step Dad doesn't even have his own bank account! He's self employed too, which I believe means he will struggle to get a mortgage in his name.

So to add to the upset of my Mother passing away, it looks like I'm also going to have to start looking at dealing with what will happen to the house, the mortgage etc etc. I have siblings, but they all have a mortgage of their own, so there's only me left that can realistically look at taking over the mortgage of this house... But, is it that simple?

I know I should go to their mortgage adviser and get info from him, but with the news of my Mums illness still fresh in everyone's mind I'm trying to get as much info as possible first!

Ideally, I would like to be able to get a mortgage in my name and take over what's left on the house we're currently in, but like I say, I don't know if it's as simple as:
X amount left on Mortgage
I get X amount mortgage from my bank and get the house etc signed over to me.

Hope this makes sense and as much info as possible would be really helpful.

Thrugelmir

Has your mother made a will?

Dale_02

I have no idea, I do not dare ask that at this moment!

I don't know much at all about all this, so don't know what will make a difference in regards a will if the house is still mortgaged and not fully paid off?

dano17439

she should have at least life insurance, and hopefully critical illness/family protection insurance. Sounds like she hasn't got the latter otherwise a claim would have already been made. The life insurance should be able to pay off the mortgage?

Dale_02

I believe she has some sort of Critical Illness protection, but I don't know about Life Insurance (Have a feeling she doesn't if I'm honest!)

Thrugelmir

Dale_02 wrote: »

I have no idea, I do not dare ask that at this moment!

I don't know much at all about all this, so don't know what will make a difference in regards a will if the house is still mortgaged and not fully paid off?

There's the distribution of her estate to be considered. The property of which forms part. The mortgage is a debt which will need to be addressed as part of the winding up process.

I appreciate that it may be difficult at the current time. However there are matters that need to be addressed. Once people face up to the reality of the situation. Then a sense of pragmatism sets in and difficul conversations become far easier.

Dale_02

Thanks, i guess I just need to wait for the right time and bring this up.

Cheers for the advice.

Mortgage_Mark_2

If she has critical illness cover then this may be a moot point if it covers the mortgage balance - get her to contact the provider ASAP.

amnblog

Dale_02 wrote: »

Thanks, i guess I just need to wait for the right time and bring this up.

Cheers for the advice.

Their wont be a 'right time' Dale.


Asking if there is critical illness cover is in place is a good start as:


1. it does not allude to potential future outcomes
2. if there is critical illness insurance it should be claimable now


You should also be aware that if mum is carrying life insurance it may well be claimable prior to death via a terminal illness clause. (where the patient's Consultant confirms the life assured has a life expectancy of less than 12 months)


Having been in your shoes I wish you all well.

dimbo61

You need to sit down with your Mum and Step Dad ASAP and go through all this with them.
Find out if Mum and Step Dad took out Life assurance to cover the mortgage and Critical Illness Cover.
Mum needs to sort out her WILL if she does not already have one?
She may need to update her existing Will.
You need to transfer all the bills and bank accounts into Your Step Dad and your names or you could have problems paying the bills.
You need to find out how much is outstanding on the mortgage, will mum get any sick pay from work or Death in service pay out?
Can she claim benefits or sick pay, disability pay/benefits etc.
She may need to go and see a Solicitor while well enough to sort out power of attorney.
Lots of help/blogs on Facebook/Internet giving good advise about dealing with Cancer and help available for your Mum and the family.
Best Wishes