Inheriting A Mortgage

[saxy_jag]

How true is this: http://www.ehow.co.uk/info_7992357_happens-inherit-mortgage.html ?

Mum's just passed away without leaving any kind of will. For various historical reasons I won't go into, there is no life assurance to cover the mortgage. Ultimately Mum's estate will be divided equally between my sister and me and sis is quite happy for me to continue living in the house until whenever as long as I pay any loan secured on the property.

The outstanding mortgage is around £13k and has around seven years left to run. We reckon the value of the property is around the £100k mark, but we could probably improve on that with not a lot of work on the house.

What are our chances of being able to keep the house? Because if we can't then I'm going to be homeless.

[Buenchico]

Despite the .co.uk address in your link, the information there clearly relates to the USA. (There are references to state and federal laws).

Your first step has to be to apply for letters of administration at the Probate Registry.

Then you'll need to speak to the lender about the possibility of transferring the mortgage. (They'll treat as an application for a new mortgage. Whether they'll grant it or not should depend solely upon whether they're convinced that you can meet the payments).

Then you'll need to follow the procedures in Section 3.2 here:
http://www.landregistry.gov.uk/public/guides/public-guide-9

Chris

[saxy_jag]

Oh crap! (Yep - I found another link to the same thing but with the 'federal laws' thing taken out. Never thought to look up the 1982 Act). We're in the throws of applying for the grant of probate now but I only have a part time job, husband doesn't work (yet) because he's been caring for Mum and we have a very poor credit record.

On the other hand, sis is happy to go into a joint mortgage if we can wangle anything that way (employed full time on a reasonable salary, three years left on her own mortgage and no family.

We're off to the bank this morning for an informal chat, so we'll see what they say.

T

[saxy_jag]

Was about to say thanks, Buenchico.

[themas]

You may strike lucky with your bank, but if you don't the best bet is to go to a mortgage broker.