BOI sells mortgage of my deceased brother to Mars Capital

As the OP has not given the information we are all seeking, it is all just guesswork as to the state of affairs at the moment.
 
Danny, now I am confused.

Are you saying that the Executor does not have to sell the house and repay the mortgage?

That he can just leave everything in limbo forever.

I am not a lawyer, but I don't think that is correct.

Brendan
 
Brendan Burgess said:
Are you saying that the Executor does not have to sell the house and repay the mortgage?
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Yes - its a fair guess that the parents will does not mention the property.

So if the will doesn't say "property situate at 123 Acaia Avenue to be sold" then the OP doesn't have to do so.

Brendan Burgess said:
That he can just leave everything in limbo forever.
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No

I'm saying the OP (update: I reread earlier post, OP is exec / administrator) can raise a mortgage in their own name & redeem the mortgage with Mars Cap.
 
I think that there is a real danger that we could mislead the OP here, so let's take this step by step to see where our disagreement lies.

1) Do you agree that Executors in general are legally obliged to discharge the debts of the deceased?
2) Do you agree that, in this case, the Executor must repay the mortgage in full?
 
Brendan Burgess said:
I think that there is a real danger that we could mislead the OP here, so let's take this step by step to see where our disagreement lies.

1) Do you agree that Executors in general are legally obliged to discharge the debts of the deceased?
2) Do you agree that, in this case, the Executor must repay the mortgage in full?
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Yes to both :)

But the property does not have to be sold to achieve both aims.
 
DannyBoyD said:
Yes to both :)

But the property does not have to be sold to achieve both aims.
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The property is being sold is it not, no matter what way you look at it.

Old mortgage paid off
Potentially new mortgage on it (or not)
Transfer of ownership into new name

That’s a sale in my book

There may be no EA involved but it’s still a sale
 
rustbucket said:
The property is being sold is it not, no matter what way you look at it.

Old mortgage paid off
Potentially new mortgage on it (or not)
Transfer of ownership into new name

That’s a sale in my book
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I think its reasonable to use the word sale in this context by its general meaning.

Property placed on open market (or auctioned), bids made at or near market value & all the usual activity associated with it.

If the OP can raise a mortgage in their own name, the property does not have to be sold.
 
DannyBoyD said:
You are getting a lot of good advice here.

Yes

They can't sell the property without an order to do so.

This is nothing to do with "banking law". If there even is such a concept.

Great, so proceed with settling the estate.

The debt on your siblings house will have to be settled.

You do that by either
a. Selling the house & redeeming the Mars Capital mortgage

or

b. Raising a mortgage in your own name & redeeming the Mars Capital mortgage.

Is the property empty or are you living there?

Did your mother leave a property or other assets to you?
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Sorry don’t mean to seem ungrateful but I’m so upset, frustrated and mad.
House is empty.
I don’t want to sell the house as it was my brothers. And I don’t have the money to buy it for full market value & I won’t get a mortgage for full market value. I could probably raise half.
Mother had no property & no assets.
I guess I will just have to let it go
 
You don't have to pay full market value.

Thats the point I'm making (repeatedly!).

You only need to raise a mortgage to clear the loan.

An example:

Property Value: 200k
Loan redemption: 85k

You raise a mortgage for 85k, the loan is redeemed & the house transferred to your name.

This assumes you are the sole beneficiary.

In the meantime, as the executor, you are responsible for maintaining the estate, so there is nothing stopping you from either occupying or letting the property in order to keep it heated / insured.

I totally understand how the loss of two family members can impact; so don't make any rash decisions.

If you decide to sell, it will be much easier to do so it the property is clean / heated / occupied.

You'll also get a much better price if you sell yourself rather than letting it go into repossession.
 
@mogrady

It would be helpful to provide all the figures to see if we can come up with a solution.

What is the market value of the property?
How much is the mortgage on it?
What other assets and liabilities are in the estate?
Do you own your own home? If so, what is its value and how much of a mortgage is outstanding?
What age are you?
What is your income?
 
Brendan Burgess said:
@mogrady

It would be helpful to provide all the figures to see if we can come up with a solution.

What is the market value of the property?
How much is the mortgage on it?
What other assets and liabilities are in the estate?
Do you own your own home? If so, what is its value and how much of a mortgage is outstanding?
What age are you?
What is your income?
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There is another avenue that i dont see mentioned thus far. Solicitors advice is required for it but dependent on the date that the OPs brother died, mars may be statute barred from enforcing the mortgage. If this is the case, it would be leverage to come to a settlement with mars on the remaining debt and keeping the house.

The general rule is that mars enforcement proceedings need to issue within 2 years of the death of the borrower but the time limit could be 6 years dependent on the circumstances. This is why solicitors advice is required.
 
Don't believe that will fly in this case.

Mars will make certain to get their proceedings started before the two years is up.

The OP does have some time / options however.

If the OP can provide the details Brendan asked for we will be better able to make recommendations.
 
mogrady said:
Sorry don’t mean to seem ungrateful but I’m so upset, frustrated and mad.
House is empty.
I don’t want to sell the house as it was my brothers. And I don’t have the money to buy it for full market value & I won’t get a mortgage for full market value. I could probably raise half.
Mother had no property & no assets.
I guess I will just have to let it go
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Its OK,. we understand,. Its a difficult time.
We can be more neutral about the finances,. We dont mean to be blunt but its important that you get impartial advice.

It doesnt matter who the lender is. The mortgage has to be paid. If you can get a mortgage to pay off the lender, you could consider but it might not be the right thing to do.
I can understand that you dont want to let the house go because of the emotional attachment, this is a natural part of grieving, but it is the wrong reason to make a significant financial decsion which may be the wrong one for you.
 
I understand that the OP is going through an emotional period, but the lack of concrete data on dates and values is not conducive to getting any really useful advice
 
Hi Mogrady

I'm sorry to hear of the loss of your brother and mother. Just wanted to comment on something you said:

mogrady said:
I won’t get a mortgage for full market value. I could probably raise half.
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As DannyBoyD has been pointing out, you may not need a mortgage for full market value. You only need to raise a mortgage for the same amount that is owed to Mars Capital. How much is Mars owed?
 
Maybe best to give the OP time and space to provide the information at a time of their choosing. They have repeatedly said it's a difficult time and situation for them.
 
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DannyBoyD said:
Not necessarily.

Without seeing the parents will & given the timing here; it would be a fair guess that the siblings property is not specifically mentioned.

So the OP is the owner of the property & can keep if they wish; however to do so they will have raise a mortgage in their name & redeem Mars Cap.

There's is some time leeway here though & if the OP is able to do so that might be a path to keeping the property.

OP says property is not in good repair; can it be brought up to habitable condition? Deep cleaning, paint & new carpet can do a lot.

Rent out the property via Ukrainian scheme & collect €800 with no tax or let at market rate and estimate tax. See which is the better deal.

You should be able to collect rent for the next 18 months or so & position yourself to take out a mortgage to redeem Mars.

Is this all worth doing?

It depends. Location, condition, value of property, value of outstanding mortgage, OPs financial standing will all factor.

You didn't answer if your mother left you other property as well?
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"Not in good repair" unfortunately also often means flood damage, leaks, damaged drains, pest infestations &/or an ill maintained, broken or even non existent central heating system.
The role of the executor is either to carry out the wishes of the deceased under their will.

If there is no will, the person carrying out the equivalent duties as personal representative is called the administrator.
But ultimately the roles are the same - they take control of the affairs of the deceased, they deal with taxes and debts that the deceased owed, and settle funeral expenses. Also stop any social welfare payments with department so no overpayments are made. Once thats done the remains can be distributed.
It isn't really the role of the exec/admin to haggle with creditors, its to settle the remaining debt.

This might be useful:
https://www.citizensinformation.ie/...ate/dealing-with-the-deceaseds-estate/#ea4b4e
 
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