Paying off old mortgage after repossession..in council house

buzzybee40

Hello
My parents had a mortgage in the 80's and lost it in the recession. The house was taken back by the bank. My parents got put in a council house and that's how it's been every since and they still pay off this mortgage! My dad didn't declare himself bankrupt and has lived with bad credit ever since. Both parents still work full time or my dad did till recently. He was self employed. He's recently been diagnosed with cancer. I am helping with him financially. 
Is there anyway we can get this mortgage written off?? They've been paying it off 30 years!
He's currently receiving esa, I am applying for universal credit, but he doesn't have a bank account because he has bad credit. 

My grandma recently died and has a house sale that's going to go through, it's my dad's retirement fund as he doesn't have a retirement package. It'll be about 30k. Will the bank take this to pay off mortgage debt. Can I put it in my name? We are not trying to avoid paying for things. Never claimed anything in our life. Any advice would be so much appreciated. Thank you 

elsien

How much was the debt after the house was sold, (presuming there was a shortfall) and how big is the remaining debt. 

If he’s on means tested benefits and has been left the money in a will or via the intestacy laws, giving it away by putting it in your name would be deprivation of assets and he would be treated as if he still had the money for benefit purposes. 

Keep_pedalling

They probable can get this written off, but speak to National Debt Line (or one of the other dept charities) before contacting the lender.

https://nationaldebtline.org/get-information/guides/mortgage-shortfalls-ew/#:~:text=on%20our%20website.-,What%20is%20a%20mortgage%20shortfall%3F,mortgage%20and%20any%20secured%20loans.

Grumpelstiltskin

Your father will be able to get a basic bank account with many banks, it won't have an overdraft but these days it is a necessity to have a bank account.

Edit  Article here Top Basic Bank Accounts: Bad credit option, no fees - MSE (moneysavingexpert.com)

sourcrates

A Mortgage shortfall debt, is essentially what this is, the balance left after a repossessed house has been sold, they tend to be quite large amounts of money, money that the majority of people will never be able to repay.

A lot of these types of debt are simply written off as unrecoverable.

Now this debt just becomes another unsecured non essential debt that your parents appear to have taken on, if its becoming unaffordable, write and tell the bank so, emphasise the health issues, and the fact neither are getting any younger, they should stop paying it basically, give the bank all the info it requires and ask them to either declare it unrecoverable or take a commercial decision and just write it off.

The 30k should be put through another bank account not associated with the bank in question.

Under no circumstance put it in the account with the bank taking these payments, get another bank account.

RAS

People here find it easy to set up Monzo accounts, the co-op are BR friendly as are some others.

As for the basics, is your dad on the electoral roll? Does he have photo ID, some accept bus passes if he doesn't have a driving licence or passport. He also needs a utility bill or Council Tax bill in his or joint names. Monzo's process is on-line, so get documents scanned in advance.  I'd check what specific providers want before applying.

He get no overdraft, but a bank card, ability to set up Standing Orders, and authorise DDs, and on-line purchasing if he wants it.

In the 80s and 90s, a lot of people signed documents making them liable for the repossession shortfall, whilst others avoided signing and limited their exposure.