Wife had mortgage in her name, has passed away - Im not working

[mule4468]

Hi guys, unfortunately a few weeks ago my wife passed away very suddenly after a short illness, now Im having to try to both deal with the loss and try to pay off the bills etc. She had paid all the bills upto the end of July including the mortgage.

 

I went into the bank Natwest as to inform them of the situation, as pertaining the loss of my wife (the borrower), they have a copy of the Death cert and Marriage cert, but told me that they could not deal with this and I would have to speak to the Mortgage dept. I also have to send them a letter regarding probate, executor of my wife's estate.

 

My wife did not have a will and I am not working, therefore a Solicitor is out of the question, therefore where possible I am dealing with the bills etc myself. So far all my wifes' creditors have been very good.

 

As my wife was working I did not receive ANY benefits what-so-ever (her salary put us just above the threshold)

 

My wife worked in a local hospital and in the NHS for over 25 years and I have been issued with statements/letters etc regarding her pension: -I WILL receive 2 years annual salary lump sum for Death in Service, a survivors pension (her full monthly salary for the first 6 months) and then a monthly salary for life consisting of half her monthly salary. If I did not have a mortgage I would be reasonably well off, all things considered BUT as I said I am currently not employed, awaiting news regarding employment and support allowance (the Dept of Works and Pension straight away said I was sick/grieving etc) I am also awaiting news regarding Bereavement Allowance/Fund.... regarding paying off the funeral fees (The funeral directors where VERY Sympathetic to my situation)

 

I have tried to find info regarding whether my Wife had Insurance regarding the Mortgage and I am awaiting news regarding this - does not look good at this stage. I spoke to staff at the bank where I was told to wait until I get a default notice regarding the mortgage (her advice) I have no idea how much the mortgage is for, though Natwest where taking a large sum (over £500 per month) out of my wife's bank account, which I am assuming is the mortgage. I was going to offer to pay the mortgage using my wifes' initial 6 month salary, with a few to selling up in the next few months - a re-mortgage is out of the question and don't think the lump sum will cover it either. My wife bought the house in 2006 (I met her late 2007)

 

Having read through some previous threads - I am led to believe the bank will want the mortgage paid in full, rather than allow me to pay it up, can someone advise me please, before there is another funeral.

Edited August 29, 2013 by mule4468

[citizenB]

I will flag your thread for others on the site team, but meanwhile , you might want to make an appointment with Citizens Advice Bureau.

 

I have popped a liink to CAB fact sheet for you regarding this situation.

 

http://www.adviceguide.org.uk/wales/relationships_w/relationships_death_and_wills_e/dealing_with_the_financial_affairs_of_someone_who_has_died.htm

 

I wonder if you might be able to obtain legal aid or at the very least a reduced introductory interview.

 

So the mortgage was in your wife's name only - is the property in joint names ?

[mule4468]

The property is is my wife's name only

[citizenB]

IMHO, I think the advice you have been given by the bank is wrong and not in your best interest.

 

I am assuming that the bank account is not a joint account.

[citizenB]

Sorry for all these questions, especially at a time like this

 

Is their family on your wife's side ?

[mule4468]

Sorry for all these questions, especially at a time like this

 

Is their family on your wife's side ?

 

My wife does have a family - brothers, sisters, father, NO children: as far as they are concerned any money in the estate belongs to me, they are not contesting any inheritance etc

 

I agree with your comments regarding the bank staffs idea - wait until you get a default notice, like they are not working or their husband has just died, simple things like that, I really wished I had a tape recorder and recorded her message.maybe if she's feeling so generous she'll pay the mortgage!

 

NO The Bank Account is NOT a Joint Account

 

Sorry for re-posting the above

[citizenB]

I have removed the duplicate posts for you - it does happen occasionally.

 

If you do have conversations with the bank where you have no witness or recording you should make notes as soon as you can.

 

I have sent out S.O.S on your behalf - however as most of the caggers who would be able to advise have day jobs, it is likely to be later on today before they are able to look in on you.

[mule4468]

I have removed the duplicate posts for you - it does happen occasionally.

 

If you do have conversations with the bank where you have no witness or recording you should make notes as soon as you can.

 

I have sent out S.O.S on your behalf - however as most of the caggers who would be able to advise have day jobs, it is likely to be later on today before they are able to look in on you.

 

Thank You, I'll look in later

[citizenB]

We believe that there should be some form of life cover as part of the lending requirement. Do you know what kind of mortgage it is.

 

Endowment - Capital & Interest or Repayment ?

 

We also think that NatWest should hold off until probate is sorted and they should not issue a Default Notice as the estate is basically frozen.

[citizenB]

We also think it might be a good idea to write to the bank with further copies of the Death and Marriage certificates - ask them to put everything on hold until probate has been decided.

 

You can either hand it in to the bank and insist on receiving a receipt or send it by way of Recorded delivery. That way you have proof that you have advised them.

 

If this were me, I would also let them know what advice the bank has given so far. eg.. that you should wait on a Default Notice being issued. That still boggles the mind.

[Ell-enn]

Hi there, did your wife have any life insurance ?

[mule4468]

Hi there, further to my enquiries, I have been given a free legal consultation and here's what the solicitor said:

 

Firstly As the mortgage is in my wife's name I am NOT legally liable for my wifes debts including the said Mortgage.

 

They looked into the Land Registry and found the asking price was £84K when bought in 2006.

 

The Solicitor informed me that they would recommend either I register my interest in Probate (because of the large sums involved, although not a necessity) to become the "official" administrator of the estate, or they could provide this service (obviously with a fee)

 

They advised me to write a letter to the Bank, acting as the administrator of the estate, where they are legally obliged to give me the mortgage details, together with any Insurance details.

 

Because I am the next of kin and survivor of wife's estate, it is inferred that I have legally inherited the house and therefore I can sell the property if so desired, bearing in mind that probate may take a matter of weeks poss. months, i.e. the deeds to the property wont be passed on until the administration of the estate is realized.

 

*The Lump sum, I will receive is enough to pay for the balance remaining on the mortgage, but as I said, I am not legally bound to do so, this is an area of most interest and I would be willing to pay a lump sum of approx £20K and then continue monthly payments, or at least until I can sell the house. If I was offered a price that simply paid off the balance of the mortgage, this would be considered.

 

My wife also had an IVA in her name and here a similar situation arises: Because it was in her name, I am not liable for her debts. Again the solicitor suggested to write a letter to the Supervisor dealing with the IVA informing them as I am acting as the administrator of my wife's estate, they are legally obliged to forward any account details I wish, and at the same time, it is their duty to inform the creditors about the current situation: as the estate is I believe to be "insolvent" the debt(s) should be wiped out: they have no legal right to demand payment from "my estate".

 

*The Lump Sum: I said this would cover the balance of the Mortgage; this is based on the original selling price and my wife's monthly payments up to her death; it does not take into account Interest accrued.

Edited August 29, 2013 by mule4468

[mule4468]

Your members might be interested to know, approx. 2mins ago I received a telephone call from Natwest enquiring if they could speak to my Wife.

 

So despite sending them a Death Certificate, she passed away on the 6th of August, attended her funeral (27th of August), they have mediums or psychics on their pay role

 

Two letters of complaint coming up:

1) For the idiot who said I should wait for the Default Notice regarding the Mortgage

2) Having absolutely NO Communication between departments & tact obviously isn't in their staffs' training manual

 

As an aside, my wife had a basic bank account with Santander. They closed her account, forwarded me cheques for money in my wife's account within 7 days of informing them of her death.

 

Wonder which Bank I may change to !!!

[citizenB]

This is unbelievable isn't it ? Yes, a formal complaint to their Head office should be sent.

 

I am pleased to see that you have been able to obtain some legal advice. I hope you do not encounter any more problems with Nat West.

 

If you are able, please continue to update your thread.

[mule4468]

Hi Folks, New Developments:

 

1) Finally after nearly 8 Weeks (YES 8 WEEKS), Natwest have finally decided to talk to me. Unfortunately what they had to say was, (to put it mildly) BAD.

 

As stated in a previous post. My wife passed away and had a mortgage in her name only. This has now been confirmed. There was NO Insurance on the property.

 

I have been informed, that because the mortgage was in my wife's name, I am NOT liable to pay for the outstanding debt and the bank will look to my wife's estate for resolution.

 

They want a letter of administration? Basically a letter that says, I am in charge of handling the finances of my wife's estate. Regarding the estate, I have checked and my calculations show that there is not enough money to pay for the outstanding debt. My legal adviser mentioned the term "illiquidity" , which I believe means there is not enough assets to clear the debt.

 

2) The bank have said that the mortgage will continue to accrue interest (it was a Capital & Interest Mortgage), but will withold from reposession, atleast until the estates admin has been finalised. So it looks like I may have to sell or at least vacate the premises. The period of around two to three months was mentioned.

 

3) I am still getting a lump sum from my wife's employer, and it will be given to me in person, rather than my wife's estate. I am presuming this means that this money is mine and cannot be used to pay off the debt. Unless I choose to.

 

I have also been informed, that if I wished to pay off the debt, I would have to apply for a mortgage to pay the mortgage, which I cannot afford. (As I am not working, the chances of getting a mortgage, are few and far between anyway)

 

4) I have been told that someone might be interested in purchasing the property.

 

My question is. If I get the letter/authority regarding handling the finances; Am I legally allowed to sell the property, even to just pay off the mortgage? Even though the bank has the deeds for the property?

Edited October 1, 2013 by citizenB

[Ell-enn]

Would the lump sum from your wife's employer pension pay off the outstanding mortgage and allow you to remain in the property?

[Annie71]

Just reading thevthread I think the advice you have been given is unclear. The house belongs to the estate and debts must be paid out of the estate. Therefore if you do not clear the mortgage the bank could reposses. I am sorry to be so blunt at this bad time. You have my sympathy

[AndyOrch]

" My question is. If I get the letter/authority regarding handling the finances; Am I legally allowed to sell the property, even to just pay off the mortgage? Even though the bank has the deeds for the property? "

 

Afraid not as you are not the owner..this is the importance of making a will.

 

Andy

[mule4468]

Would the lump sum from your wife's employer pension pay off the outstanding mortgage and allow you to remain in the property?

 

No, Although it is quite a high figure/amount. It will not cover the outstanding debt

[mule4468]

Just reading thevthread I think the advice you have been given is unclear. The house belongs to the estate and debts must be paid out of the estate. Therefore if you do not clear the mortgage the bank could reposses. I am sorry to be so blunt at this bad time. You have my sympathy

 

Thats OK. It was what I was suspecting, and realistically it was what I think will happen.Like I said, in the post my wife's estate has very little assets to speak of and the bank has told me, they would be looking for funds from the estate to pay the mortgage. However, they told me that even if the house was going to be sold, poss. auction:

 

It will not be immediate, but dependant on when they receive the letters of administration, from me. Obviously they are not going to wait for-ever and thankfully, I do have somewhere to stay, when the time comes.

 

It is NOT my debt, therefore I am under no obligation (although morally yes perhaps)* to pay the debt This includes paying the monthly payment.

 

* If at all possible I certainly would pay the debt, just to ensure my wife's name is not dragged through the mud.

 

Her side of the family, are of no help/assistance what-so-ever. I am sure if there was ample funds in my wife's estate, they would be camping outside the door. I saw them a couple of days after the funeral, and the first thing said was Whats happening about the house?, Not how are you, or do you want help or chat etc

[mule4468]

" My question is. If I get the letter/authority regarding handling the finances; Am I legally allowed to sell the property, even to just pay off the mortgage? Even though the bank has the deeds for the property? "

 

Afraid not as you are not the owner..this is the importance of making a will.

 

Andy

 

Thank you, Funnily enough about six months ago, a sales person came to our house and asked if we wanted to make a will. After consideration, we said YES. They said they would contact us within seven days, in order to pay the fee for writing up the will. We had the money, ready and waiting, but they did not show up. Makes me believe that perhaps this was a [problem]. But it didn't cost us anything and we never looked elsewhere.

 

Since this episode, crappy 2013, very unlucky for me! The first thing I did was asked my parents if they had a will and my brother too, as if one thing I learned from this, is Life is just plain crap and you have to keep your eyes on it, else it'll sneak up behind you and bite your a***e. Hindsight is a wonderful thing.

[havinastella]

Are you sure there was no life insurance. Most Mortgage companies insist that the sum borrowed is covered.

[Annie71]

If there is little or no prospect of keeping the house then why pay the mortgage. Maybe you could buy it at auction or make an offer to the BS to buy with the lump sum.