Death: mortgage left in joint name but divorced

k_f0x

Hi, I am the daughter of the deceased. My Dad was a joint holder of a mortgage along with my mother. My father and mother were divorced in 2013 with the legal decree awarding ownership of the property and its associated mortgage to my father. Upon his death, my brother and I informed Bank of Ireland. We were told to send his death certificate, once I had obtained probate, before any further conversation could be held regarding setting up a new direct debit to pay the mortgage. This I did back in September 2015.
On Wednesday I received a letter from my mother, to whom I am estranged. She informed me the property was to be repossessed on the 31st of this month due to the mortgage falling into arrears. Never once, have Bank of Ireland contacted my brother or I about this, despite our willingness to continue payment. I contacted Bank of Ireland again yesterday and Wednesday, they continue to not allow us the make any payments as we are not "named" on the mortgage.
To be clear my brother and I were granted probate and by law we own the property. However we do not own the mortgage as my dad had not got around to taking my Mum's name off. My brother and I are happy to pay and even clear the mortgage but Bank of Ireland will simply not allow us despite our continued effort over the past 6 months.
I really do not know what to do. I have a 6 month old baby so seeking legal advice is extremely difficult. My siblings and I are dependant on this flat as our inheritance. It is especially important for my siblings as they are young (19, 20 & 23) and have had to be self sufficient the past couple of years as my Mum estranged herself from us.
Please please can anyone advise / help - bearing in mind the flat will be repossessed at the end of this month.

kingstreet

The property is an asset of your father's estate.

If you have been granted probate, you (the Executor/Executrix?) can now dispose of the property legally to defray the debts of the estate, ie the mortgage.

You are not the owner. You must settle the estate debts, then distribute the remaining assets according to the will.

You are approaching the lender from that position, not as you the individual or you as a potential beneficiary. You should present them with a copy of the Grant of Probate. Lenders will often give a period to allow you to sell the property, but if payments are needed they are payments from the Estate, not from you as individuals or beneficiaries.

k_f0x

Thanks for your advice. I have already sent them the Grant of Probate in September but they are refusing to acknowledge me, as the mortgage was in a joint account. Even though it was stated in the divorce settlement that all ownership of the property and its associated mortgage was to go to my father. This has been sent to bank of Ireland too.
We had intended on selling the flat at a later date but would you suggest we sell it now?

glentoran99

k_f0x wrote: »

Thanks for your advice. I have already sent them the Grant of Probate in September but they are refusing to acknowledge me, as the mortgage was in a joint account. Even though it was stated in the divorce settlement that all ownership of the property and its associated mortgage was to go to my father. This has been sent to bank of Ireland too.
We had intended on selling the flat at a later date but would you suggest we sell it now?

Did bank of Ireland agree to this? Was a new mortgage taken out in your fathers name? its not just a simple matter of removing someone as they are liable for all of the debt

k_f0x

No, my Dad had not got around to sorting all his admin. He went into hospital in an emergency February '15 and stayed in hospital till he died in May '15. He was only 57 when he died and it wasn't expected so he has not got around to changing it.
Could my brother and I settle the mortgage on our mothers behalf?

Thrugelmir

Seek legal advice. The costs can be borne by the estate when the property is sold.

k_f0x

Thanks, my worry is that they have said that the property will be repossessed on 31st March unless payments are made. But they refuse to take payment from me.

getmore4less

if you have the account details can they even stop payments.
will your mother cooperate to make the payments.

Check the mortgage contract some have terms which effectively transfer the debt to the estate so they should deal with the administrators if this one has those.

The joint liability may not help, but as you knew about this what did you do to try and resolve/investigate that situation?

How much is the place worth and the current mortgage debt?
Was the transfer of the deeds done or is the place still in mums name as well, if it is is that tenants in common or joint tenants?

Brock_and_Roll

Could my brother and I settle the mortgage on our mothers behalf?


Yes! Unsurprisingly the Bank will let you do what you want once they have got back what they are owed.


However, having gone through 4 years of hassle with my late father's estate with a similar issue, it is very important to remember that as an executor you are fulfilling certain legal duties to realise the settle the deceased assets and settle his debts - and until this is done, put aside your (or your siblings) position as potential beneficiaries.


By the way, is the property vacant?


In my case, as a compromise the Estate agreed to pay the interest on the mortgage whilst legal wranglings were ongoing and this was sufficient to hold off repossession.

silvercar

My father and mother were divorced in 2013 with the legal decree awarding ownership of the property and its associated mortgage to my father.

Just because a court says that the property is transferred to one person, it doesn't mean that the lender has to agree to it. The lender may have insisted that your mother remain on the mortgage.

Has your mother remained in the property? Who has been paying the mortgage before and after your father's passing?

audigex

k_f0x wrote: »

Could my brother and I settle the mortgage on our mothers behalf?

If it's her mortgage to repay, you could give her the money. If it's not, she can't pay it off.

Can the estate sell the property to you and your brother at market rate? That works out as being the same end result: you just pick up a new mortgage and pay it off.