mother in law help.

[matt5983]

My mother in law has suffered with a severe mental illness for years, but its just got to bad now, lostt all income and only gets 2 pensions.

 

She has 2 debts, one a 20k mortgage and the other 12k unsecured loan, after doing the I&E paying the priority bills is fine, however they have nothing left for the loan at all.

 

Where do i stand with regards to the house being in danger etc

 

matt

[Ell-enn]

Hi, how long has the mortgage got left to go? what equity is there in the property?

[matt5983]

Hi, how long has the mortgage got left to go? what equity is there in the property?

 

Hi Ellenn,

 

I knew you were gonna answer soon lol, i think the mortgage has about 3-4 years left on it, the house is worth about 200k, but only has 20k left to pay.

[Ell-enn]

If your MIL is unable to work due to mental illness is she able to claim any benefits? Is she able to cope with the house - i.e. is it too big for her therefore meaning somewhere smaller might be better?

[matt5983]

If your MIL is unable to work due to mental illness is she able to claim any benefits? Is she able to cope with the house - i.e. is it too big for her therefore meaning somewhere smaller might be better?

 

Your right, shes just been awarded middle rate of the care componant of DLA, which has helped, shes not able to maintain the house at all and someone does help with that for free. (4 story and 6 bedrooms),

But it was her grandparents house, then her parents etc, so shes determine not to lose even thought we have told her to sale it

[Ell-enn]

I think you're right in that selling would be best, not only to clear the mortgage and loan but also for her safety and comfort. Better to sell while it's still her choice rather than be forced to do so. Would her doctor be able to talk her round? I've found in the past that older people tend to take heed of their doctor even if their family have suggested the same thing.

[matt5983]

I think you're right in that selling would be best, not only to clear the mortgage and loan but also for her safety and comfort. Better to sell while it's still her choice rather than be forced to do so. Would her doctor be able to talk her round? I've found in the past that older people tend to take heed of their doctor even if their family have suggested the same thing.

 

Thanks Ellenn

 

I'll give it a go and get her kids and family friends to have a word, considering they know her better than me lol.

 

Do you think she would be forced to sell through court considering the house is to big just for 2 people, this is what i think as all that room is not needed and so the courts will not allow it

[Ell-enn]

It's not the size of the house that's the problem. If the lender with the unsecured debt doesn't get paid then they will take it to court and ultimately could end up with a charging order on the property. If no payment can be made after that then they could apply for an order for sale so they get their money. They are unlikely to wait until the mortgage is paid off to get any payments.

[matt5983]

It's not the size of the house that's the problem. If the lender with the unsecured debt doesn't get paid then they will take it to court and ultimately could end up with a charging order on the property. If no payment can be made after that then they could apply for an order for sale so they get their money. They are unlikely to wait until the mortgage is paid off to get any payments.

 

Thanks Ellenn, i think i need to have a chat with her asap.

[Lea_HTH]

Thanks Ellenn, i think i need to have a chat with her asap.

 

There are alternatives that could be considered. The two loans (mortgage and unsecured loan) could be refinanced in the name of a child, or two...or three. As in, an adult child. I presume your MIL wants to keep the house, not only because it has been in the family for so long, but also because she perhaps wants to pass it on to one of the children? In the meantime, the children who will benefit from the property in the long run, could help their mother maintain payments.

 

It's going to be very hard for her to see the 'sense' in selling up when she wants to pass it on - and for the sake of 32k on a house with several times that in equity, it really isn't her only option.

 

The other thing is that you said in your initial post that after paying the 'priority bills' there is nothing left for the loan - is that the unsecured loan you are referring to, or the mortgage? If the latter, then that IS a priority payment and comes above and before any other payment (bar Council Tax) that your MIL has to pay. She can offer token payments to the unsecured loan, but as Ell-en states, there is a likelihood they will take her to court and gain a charging order at some point.

 

Hope you all work it out together as a family.

[Dotty50]

An Equity release mortgage may be something to consider but with MIL suffering from mental health problems it may not be a option.

 

Of course, her family would need to be in agreement with this but it could allow her to stay in the house and not have any repayments to make.

 

You would need to take independent advice on this IMO

[dcahelp]

Not being sure on the specifics of "mental health issues" this is a small term for a broad spectrum illness, could the op or closer family member become an executor or have power of attorney over the "estate" and from there make attempts at finding a financial solution......does any of that make sense?

 

I do agree with dotty tho... me thinks pro advice on your specifcs would be good idea.... at least you would know exactly where you and/or your MIL stand.

 

Leah/ Ell-enn would you advocate the pro advice thing? Or any of the above suggestions re power of attorney or executors

[Dotty50]

I don't think equity release is an option if someone has power of attorney, but I can check this out if required.

[dcahelp]

hmmmm, agree with you there dotty.... not sure on that one either, but also dependant on what " mental health issues" the op refers to I manot sure that Equity release would be good for the MIL either, namely that she may not be of sound mind and fully understand the ins and outs of it....

 

I sound so cruel saying that.....

[matt5983]

Hi all,

 

Mental health is extreme bi-polor along with agraphobia, on 2 diff AD's as well as sleeping tablets, anti-anxiety tablets you get the picture.

[dcahelp]

ok, I really wouldnt go with equity release just yet, I'm a "recovered" self destructive bi polar sufferer, I say recovered, but I am easily knocked, but I can now recognoze in myself when something isnt right. If your MIL isnt at that point yet, then anything as heavy as an equity release and all its fine print is going to be hard for her to understand LONG TERM, namely she can do it now, then when she is better, she will want to know WHY she did it, and not understand WHY, she may feel like she was pushed into something she didnt want. Which brings me back to being of sound mind etc etc. Please forgive me if I sound cruel and heartless.

 

Believe me im on the otherside now, some of the things I did still bring me to tears. Again could you or someone closer take temporary control of her finances, and you can go from there? I still think that you need professional advice on this.

 

I will send Leah and Ell-enn a message and see what solutions they can come up, both are very knowledgable on this sort of thing.

[matt5983]

Shes on a DMP, which is helping alot and its also letting her find her feet with her finance's. It's just this bloody loan

[Dotty50]

I don't think my suggestion of an equity release is really an option under the circumstances, however just a few more questions to get a clearer picture if you don't mind Matt.

 

How old is your Mum?

 

Does she work? Depending on this, could she approach her mortgage lender to increase her mortgage and pay off the unsecured loan. (although changing unsecured debt to secured isn't always the best thing to do) but if she is on a DMP then I guess this may not be an option.

 

How old is the Loan, who is the lender, is it enforceable? Others can offer opinions on the chances of the lender going to court and their experiences.

 

If it is enforceable, and they get a ccj and charging order, then would they enforce a sale?

 

But that scenario doesn't happen overnight and if she only has 3-4 years on her mortgage then she might be in a better position financially to sort the loan out, after the mortgage has been paid.

[matt5983]

I don't think my suggestion of an equity release is really an option under the circumstances, however just a few more questions to get a clearer picture if you don't mind Matt.

 

How old is your Mum?

 

Does she work? Depending on this, could she approach her mortgage lender to increase her mortgage and pay off the unsecured loan. (although changing unsecured debt to secured isn't always the best thing to do) but if she is on a DMP then I guess this may not be an option.

 

 

How old is the Loan, who is the lender, is it enforceable? Others can offer opinions on the chances of the lender going to court and their experiences.

 

If it is enforceable, and they get a ccj and charging order, then would they enforce a sale?

 

But that scenario doesn't happen overnight and if she only has 3-4 years on her mortgage then she might be in a better position financially to sort the loan out, after the mortgage has been paid.

 

She's 64 and cannot work at all, on 2 pensions, one private, one state.

 

Loan is with Lloyds, about 4 years old, done the CCA and everything is fine with that, fighting the PPI as its worth 7k and she was self employed when it was sold.

 

hoping to use the ppi and get the remainder wrote off, but im not sure yet

[Dotty50]

That would be a huge dent in the debt if you can get the PPI back.

 

Re-mortgage not an option in view of your Mothers status etc.

 

If Lloyds issued a claim, I would hope you got a sympathetic judge, but I would ensure that Lloyds know all the facts and why she cannot pay, if you have not already done so.

[matt5983]

That would be a huge dent in the debt if you can get the PPI back.

 

Re-mortgage not an option in view of your Mothers status etc.

 

If Lloyds issued a claim, I would hope you got a sympathetic judge, but I would ensure that Lloyds know all the facts and why she cannot pay, if you have not already done so.

 

That was my next idea, i might call the m and get them to send there mental health and debt questionaire which they use in house from the customer relations, trouble is i do not want to go over the DMP heads so it gets all confusing with who's doing what

[Dotty50]

Who is doing the DMP (I hope it's a free one) and what have they advised about paying the unsecured loan? Your first post stated that there is no money left to cover it, but is she or the DMP sending token payments?

 

I certainly wouldn't worry about going over their heads, yes get that mental health and debt questionnaire completed asap, everything you have tried to do to resolve the issue IF it ever got to court would go in her favour.

 

Make sure you keep a record of all correspondence and send it recorded delivery and get proof of receipt off the royal mail website.

[Lea_HTH]

I haven't read all the responses in detail (on my way to court in three minutes, so will come back to this later and read again), but on the surface of it, it seems your MIL may have capacity issues, therefore before any court action could take place, she would probably need to be assessed as to her understanding of the proceedings - and a litigation friend appointed as necessary. That process takes a whole lot longer than an ordinary repossession with no health issues or capacity issues involved.

 

If you are hoping to resolve this issue prior to going to court, you will need your mother in law's permission to act on her behalf (she'll need to write a letter - but again, capacity issues may affect this, so you probably need to seek legal advice) - once you have a letter of authority you will be in a position to negotiate/act on her behalf.

[matt5983]

Who is doing the DMP (I hope it's a free one) and what have they advised about paying the unsecured loan? Your first post stated that there is no money left to cover it, but is she or the DMP sending token payments?

 

I certainly wouldn't worry about going over their heads, yes get that mental health and debt questionnaire completed asap, everything you have tried to do to resolve the issue IF it ever got to court would go in her favour.

 

Make sure you keep a record of all correspondence and send it recorded delivery and get proof of receipt off the royal mail website.

 

Yeah its a free one, she has £9 per month left over for the loan but has just been awarded the care componant of DLA, i know they cant use it as its an allowance and not an income so unsure with that.

 

Dealt with lloyds before on other issues, so i know to keep to everything lol