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  • FIRST POST
    • luvchocolate
    • By luvchocolate 9th Apr 18, 5:56 PM
    • 1,664Posts
    • 1,498Thanks
    luvchocolate
    Interest only mortgage
    • #1
    • 9th Apr 18, 5:56 PM
    Interest only mortgage 9th Apr 18 at 5:56 PM
    Hi I am a regular on the B.R forum but think this question may be answered better on here.
    Interest only mortgage taken out in 2007 in my sole name.
    This was supposed to be renovated and let.
    Partner of this time did nothing and we split up.
    Declaration of Trust done in 2009
    Now ex partner moves moves in and starts paying mortgage as the D.O.T says ..the B.I belongs to him.

    I have to declare B.R in 2012 as the 2 other properties were repossessed with a massive shortfall in 2008.
    The loan will become payable when I am 82 I will not be in a position to pay this so I imagine they would take the property,unlikely to be a shortfall as loan is 74,000 and the B.R would take care of that.

    I was wondering what would happen if I die before this time with maybe an estate of app 10,000 with funeral to pay for.
    Would any remaining funds be taken or would they just take the property back?

    Thank you for your patience but felt you needed to know the background.
Page 1
    • Thrugelmir
    • By Thrugelmir 9th Apr 18, 6:25 PM
    • 60,153 Posts
    • 53,487 Thanks
    Thrugelmir
    • #2
    • 9th Apr 18, 6:25 PM
    • #2
    • 9th Apr 18, 6:25 PM
    The executors of your your estate will need to settle any outstanding debts.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • ThePants999
    • By ThePants999 9th Apr 18, 7:24 PM
    • 1,287 Posts
    • 1,660 Thanks
    ThePants999
    • #3
    • 9th Apr 18, 7:24 PM
    • #3
    • 9th Apr 18, 7:24 PM
    https://bereavementadvice.org/topics/probate-and-legal/insolvent-estates has the detail you want here. In short:
    - firstly, secured creditors can sell the assets on which their debts were secured. If they recover all their monies from the sale, the balance goes into the estate. If they don't, the remaining debts become unsecured.
    - secondly, the estate pays for the funeral and administration costs.
    - then other debts get paid off (including shortfall on secured debts).
    • luvchocolate
    • By luvchocolate 9th Apr 18, 7:57 PM
    • 1,664 Posts
    • 1,498 Thanks
    luvchocolate
    • #4
    • 9th Apr 18, 7:57 PM
    • #4
    • 9th Apr 18, 7:57 PM
    https://bereavementadvice.org/topics/probate-and-legal/insolvent-estates has the detail you want here. In short:
    - firstly, secured creditors can sell the assets on which their debts were secured. If they recover all their monies from the sale, the balance goes into the estate. If they don't, the remaining debts become unsecured.
    - secondly, the estate pays for the funeral and administration costs.
    - then other debts get paid off (including shortfall on secured debts).
    Originally posted by ThePants999
    Thank you thats very helpful and much appreciated
    As my ex has the beneficial interest any money over would go to him or his beneficiary.
    I wondered if there was a shortfall would the B.R stand up when I have died?
    My son says forget it and he will deal with it when the times comes but he has been my rock dealing with it and considering my ex left me with debts of over 200,000 he has lost a lot also.
    Thank you
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