What Might Happen to the House?

krazyk

Sadly my Mum passed away earlier this week. I was living with her and will continue to live in her house for a bit. I'm curiously what could happen to the house.

She had an interest only mortgage where she was only paying the interest each month with the help of benefits. So there is still a large sum to pay off. She was supposed to pay it off several years ago but thankfully the bank has postponed this a couple of times and the current deadline is 2019.

I'm hoping I can stay in the house for at least a few months but wondering if the bank will repossess it? My brother and I would like to sell it on the open market later this year. Mum and us were going to sell it anyway as it was too big for her.

I will be asking the bank once I have the death certificate so it's just curiosity at the moment. Another query is she *might* have had life assurance with her personal pension but we're not sure. Again, I will query once I have the death certificate as I'm wondering if that will pay off the mortgage.

PasturesNew

In short, if you sit and do nothing, then the house would be repossessed - eventually.

If you intend to sell it, then do it soonest and you will be able to do it in an orderly manner.

You will first need to go through probate and get the "authority" to be able to sell it, but that doesn't prevent it going onto the market straight away, it just can't be completed/sold until after the probate's been received etc.... which could take, say, 3-4 months (or longer, depending how complex things are).

Your best bet is to communicate with the mortgage company and keep them informed of your intentions.

If you can find the mortgage balance by any other means, you can pay off the balance and the house can become yours. e.g. if there is life assurance and it pays enough, or if you find a secret tin under the bed

If you/your brother can raise a mortgage on the outstanding balance between you, you could also consider raising a mortgage between you to pay it off.

In short - if you go to the CoOp now for bread, there won't be a man standing on the doorstep when you get back wanting you out..... it'd take a LOT longer than that.

Best advice is: keep the mortgage/company fully informed - and ensure you keep up to date with reading/responding to their paperwork and keep communicating with them so you don't get any "surprises".

Norman_Castle

The bank should only reposes the house if there is no sign of the debt being repaid. Talk to them and explain your plans to sell the house.

https://www.gov.uk/after-a-death/overview

Sorry about your mom.

krazyk

Thank you both. Yep we don't intend to keep the house for long as it's not in an ideal location. And yep, I intend to inform the bank and suggest we sell the house to repay the mortgage.

Thanks for your help. :-)

G_M

Just to add to the above:

* is there will, and who are the Executers? You need to talk to them as they are now responsible for the estate including the house.
* who inherits under the will? If no will, what other close relatives are there as this determines who inherits?
* what is the house worth if sold?
* how much is the outstanding mortgage?
* what other assets does the estate have (savings, investments, helicopter etc)?
* does the estate have any other debts (credit cards, loans, etc)
* could you raise a mortgage in your own name (what's your salary, credit rating etc)? How much?

This may also be useful:

https://www.gov.uk/wills-probate-inheritance/if-the-person-didnt-leave-a-will