Changing name on a mortgage

veryskint_3

Hi all this is not about the will again. But ive just realised, when my husband got divorced he was ordered by the judge to sign the house over to his ex wife (who is now deceased) which he did but if she defaulted on the payments because his name was still on the mortgage they would come to him for it. But after a few months she told him the bank had been in contact and had mistakenly given them the wrong mortgage ( an interest only instead of total repayment) and would he sign another mortgage with her. My husband said he wouldnt sign anything as the judge told him to sign the house over and that was it, so the mortgage company got her to sign a new mortgage in just her name AND on the strength that she was unemployed and claiming income support and that the social would pay the interest (which they did) Im sure thats not right as someone who applied for a mortgage normally and was on income support they would laugh at them. Can anyone please advise!!

silvercar

So initially the mortgage was in joint names and the house signed over to her.

Then your husband refused (sensibly) to change the mortgage so the mortgage company changed the mortgage themselves.

If this is true then the mortgage is not your husband's problem.

I would suggest that it is unlikely to be true, benefits only cover interest on a mortgage, never capital repayments, so if it had happened like you say, the mortgage would be in arrears from day 1 as no-one would have been paying the capital.

The mortgage company may have produced some paperwork so that the benefits would pay the interest. This would still leave your husband responsible for the mortgage if it defaulted.

Im sure thats not right as someone who applied for a mortgage normally and was on income support they would laugh at them.

In this instance the mortgage was already in place, so a lender is more likely to be accomodating, whether they would allow the earning party's name to be removed from the mortgage is doubtful.

JimmyTheWig

silvercar wrote: »

I would suggest that it is unlikely to be true, benefits only cover interest on a mortgage, never capital repayments, so if it had happened like you say, the mortgage would be in arrears from day 1 as no-one would have been paying the capital.

What if it was an interest only mortgage?

silvercar

JimmyTheWig wrote: »

What if it was an interest only mortgage?

"But after a few months she told him the bank had been in contact and had mistakenly given them the wrong mortgage ( an interest only instead of total repayment) and would he sign another mortgage with her."

Re-reading your post, I wonder if the ex was trying it on. She had your husband as joint mortgage holder, knew the benefits would pay the interest and thought she would see if she could wangle it so he paid the capital.

Most likely is that the mortgage lender gave her the paperwork to show the benefits people, they paid the interest (only) and the mortgage continued with your husband still a named party to the mortgage.

veryskint_3

silvercar wrote: »

"But after a few months she told him the bank had been in contact and had mistakenly given them the wrong mortgage ( an interest only instead of total repayment) and would he sign another mortgage with her."

Re-reading your post, I wonder if the ex was trying it on. She had your husband as joint mortgage holder, knew the benefits would pay the interest and thought she would see if she could wangle it so he paid the capital.

Most likely is that the mortgage lender gave her the paperwork to show the benefits people, they paid the interest (only) and the mortgage continued with your husband still a named party to the mortgage.

Like i said before the ex wife has passed away now, but is there anyway we could find out if my husband was still on the mortgage as the insurance paid out on her life policy and paid the mortgage off. I need to know this as we are having trouble with the executors of the will (kids grandma) as we are really struggling and they wont help us out 1 iota.

JimmyTheWig

Get your husband to phone the mortgage company?