Getting a write-down for paying off inherited mortgage from Pepper?

[cremeegg]

I presume that Pepper would want the mortgage cleared if the borrower died.

No doubt Pepper would want that, but do they have a legal right to it.

Is it usually a condition in a mortgage agreement that the mortgage be cleared in the event of the death of the borrower, or is there a legal requirement. If probate is not taken out for example.

This is probably crystal clear to people who know, but its not clear from this thread.

 

[Thirsty]

Hi Thirsty

My point was "Could they choose to pay the mortgage and not notify the lender. And then after two years claim it was statute barred?"

No, this wouldn't fly.

I presume that Pepper would want the mortgage cleared if the borrower died.

Yes. But that doesn't mean house has to be sold. OP can clear the late parents mortgage either with a new mortgage or a combination of their lump sum / smaller mortgage.

My main point at this stage is that they have some time & if the OP uses that time wisely (rent-a-room income + save at least the monthly mortgage amount) and position themselves to raise a mortgage in the next 12 months, they should come out of this alright.

 

[Thirsty]

mortgage be cleared in the event of the death of the borrower

Yes. See previous post.

In the US (and possibly other countries) you can subsume (in effect inherit) the mortgage along with the property. As long as the mortgage payments are made everyone is happy.

 

[Pinoy adventure]

Thirsty - how would the 2-2.5years come into play ??

 

[Thirsty]

In general you have about a year to get grant of probate & the house can't be sold until you have that.

Until then, the mortgagee will sit tight & wait. Interest still accrues, so they are not losing out.

The mortgagee has 2 years from date of death to start proceedings, before it becomes statute barred.

So lets say they do so at the last minute. It'll still take around six months or so for them to get an order for repossession.

Of course the OP doesn't want that to happen, but thats why I estimate that they have a bit of time to get their strategy sorted.