Moratorium of 6 mths granted , then what?

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fluffy47

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A family member recently passed away. He had a mortgage with a balance of 114k outstanding. His property may be worth 100K max i would imagine. Unfortunately, there was no mortgage protection in place. AIB have granted 6 months freeze on payments..which brings us up until Nov 2014. I am due to get the house on the market in the next few weeks.

What happens once Nov comes around. Do we have to start to make full repayments to keep things 'right' with the bank. It may be tricky as we already have mortgages of our own to maintain payments on. Is there any chance that the bank may accept interest only payments?

thanks in advance
 
Sorry for your loss. I'm sure other people will understand this better than me, but ... why on earth would you be making any payments at all to the bank? Are there other assets of the estate that the bank will pursue? Was the family member the only person named on the mortgage? If so, the bank can't pursue anyone else for the debt. You certainly shouldn't be considering paying out of your own money -- the bank has no claim whatsoever on it.
 
Yes, he was the only person named on the mortgage. There will be some payments due on production of a death cert to his estate which will deal with the shortfall etc... I figured that payments would obviously need to be made to keep the bank ' happy' . I honestly Havnt a clue.
 
OP: re " ... I am due to get the house on the market in the next few weeks. ..."
In what context do you see yourself having this role.
Did the relative leave a will?
If so who are the executors and who are the beneficiaries?
If you provide some more detail we can give you more direction.

As said already, unless there is other paper work the debt is against the estate and nobody else so I cant imagine how you got a moratorium unless you were acting for the estate: being just a relative is not enough.
My concern here is that if you row in here without any rights backed up by the will, then if it goes pear-shaped, the beneficiaries could be less than pleased if say you sold it at what they think is too low a price.

Mod: as this is more a wills and estates question, it might be better moved
 
Hi Ircoha,

there is no will and because my sibling was not in a relationship our solicitor informs us that my mother stands to inherit his assets etc... Considering her sudden loss, she is not in the position to deal with organising paperwork. As a family and on her instruction she has asked me to deal with the practicalities on a day to day basis. She is informed on a regular basis as to what is happening and nothing is done without discussing it with her first.

Our solicitor has suggested that I become Administrator of my siblings affairs taking my mothers situation into consideration. My mother is more than happy for me to do this.

Our solicitor contacted AIB, explained to them the situation and they have written to her offering a 6 month moratorium on payments.

Regarding the fact that the house is probably worth less than the monies owed to AIB, well there are various benefits due to my siblings estate which will more than cover the shortfall.

I hope this clarifies the initial query somewhat.

thanks again
 
Sorry for your loss.
Thanks for the clarification, which while painful to pen, will help the others here give you some pointers.
My only concern is that where there is money and family etc there can be "issues", perceived or otherwise, and all I want to make sure is that you don't find yourself, through your helping your mother, on the wrong side of such issues.
Memories of what was verbally agreed at the time can very quickly fade through selective amnesia....
 
You are very kind to make me aware of the potential difficulties that could arise in the future and I have considered them all before I agreed to help her out.

At the moment we are very clear as a small family what needs to be done. I can only hope that this remains for the coming months.
 
It sounds like you are pretty much on top of the situation. However, I still don't understand the bank "agreeing" to a moratorium on mortgage payments. They have absolutely no claim whatsoever on you or members of your family to make any payments against a mortgage which is not yours. They must get in the queue and wait for probate along with any other beneficiary of the will. You don't need their agreement for this.

Additionally, the estate must pay for administration and funeral expenses before the bank is entitled to any residual. The Revenue Commissioners also come somewhere in the pecking order for any outstanding taxes. I'm no expert ... hopefully your solicitor knows all this. I'm sure you're familiar with the following, but just in case:

http://www.citizensinformation.ie/en/death/when_someone_dies_in_ireland.html

http://www.citizensinformation.ie/e...estate/what_happens_the_deceaseds_estate.html

http://www.citizensinformation.ie/e...estate/dealing_with_the_deceaseds_estate.html
 
I imagine that AIB will extend the moratorium if needed. You being proactive in getting the legalities sorted out and the property on the market promply will show you mean business to AIB, which will be what they want.

You must not pay anything out of your own money unless you are sure that you will get it back.
 
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