Loans taken out against property/home

greyjaybee

Can anyone advise me out there ! I recently discovered that my elderly Mother (from whom I have been estranged for a long time) has, over the years taken out various loans 'set against her home',(are they called equity release) for which the mortgage had been paid off. Some rather a long time ago. I have no more details or amounts but heard a story about a lady whose parents did a similar thing and when deceased she found to her horror, after selling their home the proceeds did not cover the whole of the accrued interest and as next of kin this fell to her. A lengthy court battle ensued apparantly and this poor lady still ended up practically bankrupt clearing the deficit.
Needless to say I am having one or two sleepless nights, since my incredibly, I think, selfish Mother though late 80's is fit and healthy and all this interest may well go on adding up for years, before either she dies or moves to a home etc . I do have an older sister, and I have practically no assetts (not home owner).
Does anyone know, could I really be responsible for any deficit payable to whichever loan company she/they used.
Thankyou very much guys !

CLAPTON

Whatever the state of your mothers finances you will not be liable for any debts when she dies.
Upon death, her estate is responsible for paying any debts. if there is insufficient funds then the debts die.
I am assuming that you have no joints debts/mortgage with her of course.

jonesMUFCforever

Why do you think you mother is selfish?

Is it more of a case that there will be nothing left for you to inherit?

petermb_2

With any issues like this it really depends on how your mother entered into a loan that dictates whether you can actually do something about it or not.

I would need to know whether she used a broker. If so who? and what paperwork your mother has regarding the arrangement of the loan.

greyjaybee

Thanks.
I regret I have no information. this was really just a rather pannicked general enquiry, since I heard about the old girls shenanegins through someone else. Can it happen in your experience that next of kin might be liable ?

greyjaybee

ejones999 wrote: »

Why do you think you mother is selfish?

Is it more of a case that there will be nothing left for you to inherit?

This is a rather presumptuous assumption on your part and actually totally wrong. I dont give a stuff about inheritance, but would rather not get screwed over by a loan company. upon her death. This was a general enquiry, hoping for a useful reply, (which I have received), unlike yours !
Since I do know this woman, I can say, yes she is rather selfish. :mad:

greyjaybee

CLAPTON wrote: »

Whatever the state of your mothers finances you will not be liable for any debts when she dies.
Upon death, her estate is responsible for paying any debts. if there is insufficient funds then the debts die.
I am assuming that you have no joints debts/mortgage with her of course.

Thanks so much. Thats rather a relief to read, since, no I do not have any joint debts.
V grateful to you !

jonesMUFCforever

greyjaybee wrote: »

This is a rather presumptuous assumption on your part and actually totally wrong. I dont give a stuff about inheritance, but would rather not get screwed over by a loan company. upon her death. This was a general enquiry, hoping for a useful reply, (which I have received), unlike yours !
Since I do know this woman, I can say, yes she is rather selfish. :mad:

You say that you are estranged from your mother.
Nowhere in your original post was there any compassion or worry about her; just how will it affect me ie will I have to pay her debts!

RabbitMad

The other lady's case is probably where she was executor to the will and didn't follow the correct procedures for informing all of her parents' debtors.

Me_Myself_2

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Me_Myself_2

Make sure you get a solicitor to deal with the estate.

1) S/he will sort out who is owed what.

2) S/he will get paid for work done.

3) S/he will then pay all creditors (on a pro-rata basis if there is a shortfall).

4) Any remaining money will be distributed as per her will (or intestacy rules).


YOU WILL NOT HAVE TO ANY ANY SHORTFALL.

MM