House repossession?

  • Thread starter Ellie Carver
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Ellie Carver

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Bit of a long story, but I would really appreciate any advice anyone can offer.
My dad died three years ago leaving my mother with a mortgage of around 20k on their house. They had no insurance and my mother had never worked as his income was always sufficient for them both. I have just found out about this and she is serioulsy in arrears with this mortgage, eighteen thousand outstanding with seven thousand of that being arrears. She got a small job after my dad died, but it wasnt enough to cover her bills. Now we are in dire straights, she is presenly upstairs crying her eyes out.
She has consulted MABS several times and they have suggested selling the house each time , but she won't hear of this as my dad practically built it himself (hobby house over two hundred years old).
So now the mortgage company are talking repossession, I have talked with them and they say that they gave her every chance to repay, and she needs to pay the arrears immediatley.
Will they really sell her house for 18K? I have recently bought my own house and can't afford repayments on another loan myself. Her credit history is now shot.
On a side note, as the house is really old, it was about 100 years back split into two houses, my parents literally bought the two halfs at different times and remade it into one house - as far as I can see from the land registery there is no loans outstanding on either folio number. My mother has also said that this mortgage was only based on one side of the house. But basically if the bank did forclose, and as its now no longer possible to split the house, where do they stand then.
Also this mortage was obviously based on my dads income, (although it is in joint names), does my mother have no comeback?
My heart is broken, my mother is a broken woman, she has already lost her husband, will they take her house.
I am sorry for such a long thread, but I really need advice. This is such a small amount, but I just can't raise it without putting myself in difficulty. I need help.
Thanks in advance.
 
Hi and thanks for the reply. Yes, quiet regularly most months, has being missing them spordacially every third month maybe more, and the most recent miss has spurred these letters about foreclosing.
 
Dear Ellie,

Sorry to read of your and your mothers problem.

Few quick things I'd say...

a) seems a bit drastic to have to sell a house (home) for the sake of E18k debt. If the lender did sell the house, they wouldn't just sell for the amount they were owed, they'd have to achieve fair value for same - take what they were owed and give the balance to your mother.... however hopefully things wont come to that ...

b) if this was a mortgage in your late dad's name - there should have been a life policy assigned to the bank as security - have you investigated if this existed and if so what has happened to it?

c) Can totally understand your mother's reluctance to sell her family home - have you other siblings - could ye pool together and see if ye could come to some arrangement with the lender?

d) another potential option (but I'd advise your mother, you and any other siblings to take legal advice) would be to look at the option of a Lifeloan (that's the BOI name for it other providers, will have their own branding on it) - basically depending on the borrowers age, they can borrow, up to a certain value (say 25/30%) of the property, on a no repayment basis, the loan and accrued interest just roll up until the borrower passes away (sorry to be morbid) or a decision is taken to sell the property - this obviously has an impact on you/others who may inherit the proprty in time as there would be an outstanding loan on same. I'd keep this as a last option - again would advise you taking legal advice if going this route - would suggest you look at b) and c) first.

Hope this helps and that things work out for you both.

BM
 
Would you ever consider renting the house out and taking your mother to live with you for a year? I know its not ideal but depending on the rent, it might knock a sizeable sum off the 18k.
 
If your mother could pay something back to the lender to show good faith then it may stop them beginning the process of repossession. What is your mother's income, what does she live on, there is a scheme whereby the social welfare will pay something towards the mortgage if a person does not have income. I'm surprised that MABS didn't tell your mother that. Are you sure they told her to sell the house, the debt is too low for that to make sense. Your mother needs to show the lender she is going to start paying on time and you should try talking to them again, maybe with the help of someone from MABS.
 
Just wondering is there a Citizens Advice Centre near you and do they have a solicitor on a given night.

If there is, make an appointment for you and your Mam, take all paperwork with you and go and get some free legal advice.

I would also enquire as to help from CWO in your local area.

Is your Mam on Widow Pension, if she is I would presume that she may get some form of Mortgage Assistance.

There has to be some way around this, 18K is nothing on a house.

If this went in to court, which it would have to do for a repossession, I can see a judge telling all parties to work this out :).

My heart absolutely goes out to your Mam because she was keeping this all to herself instead of telling you. She must be so so worried.
 
François said:
Would you ever consider renting the house out and taking your mother to live with you for a year? I know its not ideal but depending on the rent, it might knock a sizeable sum off the 18k.
Click to expand...


Or even rant-a-room should more than make the payments on that loan
 
Hi there,
My mum was in a simular position after my dad died it was not manditory to take out such insurance in those times.
I would agree with Bank_Manager, it would be better all round if some agreement could be made with the bank, and I am sure given the circumstances they may be willing to work with your mum.
 
Thanks for all the replys, I took the day of work to sit down with my mam and all the paperwork she has later today, we put it off over the weekend as she was too upset.
She says that they did have insurance but dosen't know what happened to it, I presume lasped, but at least its something, the home insurasne is paid up so i can't understand how one was left to laspe.
She has contacted the citizens advise people before and they have a mortgage interest supplement, for her because the mortgage is so low, it worked out as a tenner a month off the interest. (better than nothing, i will be making her go back to apply for it)
I need to go through all her expenses with her, and her incomings, am also going to suggest to the mortgage company that repayments be made from my account, at least that way I know they will be met.
I rang my bank this morning and they have approved me for a loan so at least I know of the worst comes to the worst I can pay.
I just can't believe it, its mind blowing really, she says that she had been at her wits end with it all, I can believe it, i can think straight since she told me.
 
Ellie Carver said:
Bit of a long story, but I would really appreciate any advice anyone can offer.
I have recently bought my own house and can't afford repayments on another loan myself. Her credit history is now shot.



This is such a small amount, but I just can't raise it without putting myself in difficulty. I need help.
Thanks in advance.
Click to expand...

I ma glad you are seeing light at the end of the tunnel. But are you sure you can afford another loan ?
Good luck anyway.
 
Ellie Carver said:
She says that they did have insurance but dosen't know what happened to it, I presume lasped, but at least its something, the home insurasne is paid up so i can't understand how one was left to laspe.
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Sorry if I am repeating anything but if your parents had mortgage protection insurance in place, it would have paid off the mortgage if one of them died. See if your Mam can have a dig around - depending on when they took out the mortgage, it is likely they had mortgage protection insurance.
 
Ellie Carver said:
She says that they did have insurance but dosen't know what happened to it, I presume lasped, but at least its something, the home insurasne is paid up so i can't understand how one was left to laspe.
Click to expand...
This is definitely worth following up. Get the policy document and follow up directly with the bank or insurance co to check the status. This should really be your top priority, as it could possibly solve all your problems at one go.
 
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