Pls Help!!! can mortgage lender force mortgage redumption?

[Swisaw]

The mortage for our house is in the name of my wife, who passed away five years ago. I got the probate and have been paying the mortgage every month in time for the last five years. I just got a letter from mortgage company asking me to redeem the mortgage by June 2015. I am in a position to continue paying the mortgage but not in a position to settle the remaining mortgage in one go.

May bank may lend me money but at a cost. If the mortgage company insists on the redumption of the mortgage, can I impose early settlement penalty on the mortgage company to recover the cost of borrowing money from my bank?

Please help!!!

 

[AllUpHere]

Did you not ask exactly the same question ages ago?

 

[Mark T Jones]

I'm reasonably sure that a condition of the mortgage will be that the customer should be alive

However, if you read in to it you might find a solution

It is possible ( not likely any more) that the lender is looking to reduce their book, so will give you a handsome discount to settle

Or the might be looking to didy up their admin so might (for a fee) transfer to you

Negotiated settlement is normally better than silly threats!

 

[fisicx]

Did you not ask exactly the same question ages ago?

Yes he did. And he ignored all the given advice.

 

[tony84]

How can you impose charges on the lender? There is no contract between you and the lender, im pretty sure they would not agree to that one some how.

The lender can call in the loan, yes. Again, there is no contract in place between you and the lender so they are within their rights to ask for that money back. They are not forcing you to take out a new mortgage and so therefore are not forcing any charges on you. You have the option of selling up or trying to arrange finance to pay off the current mortgage.

Im surprised you have been given 5 years. You would normally get around 6-12 months.

 

[fisicx]

Which is exactly what he was told last time. But Ahmad always knows better so any advice given will once again fall on deaf ears.

 

[Swisaw]

Did you not ask exactly the same question ages ago?

No, my question at that time was about to transfer the property and mortgage to my name. This is a different situation. The mortgage company wants all the money back in one go.

 

[Swisaw]

Many thanks to Mark and Tony. Now I understand my position better.

 

[Swisaw]

By the way what the mortgage company can do in case I was not able to redeem the mortgage?
I assume they can not froce me to sell the house or take it over without court order. As I am able to do full monthly mortgage payment, in whose favour the court order will go in this case?

 

[fisicx]

Is the mortgage in your name (as you were advised to do last time)?

It's not your house. It belongs to the bank. They can do whatever they want. If your name is not on the mortgage documents you have very few rights. It's unlikely they will kick you out but you will lose the house.

Probate means nothing. All that matters is the name on the mortgage. If it isn't you then the bank can sell the house. They can easily get a court order and put the house on the market.

 

[MOIC]

If you are in a position to get a mortgage in your own name, this may be the best course of action.

If you can start the process and find a willing lender, this should satisfy the current mortgagee

I am sure there is a UKBF member (name escapes me) that arranges mortgages for self employed people. (The requirements are stringent)

It's worth a try.

 

[Chris Ashdown]

I have not read the original post

Are you saying your wife originally took a mortgage on the house you live in, but she died 5 years ago and in the meantime you have been paying the monthly payments

You have had probate and the house and all her things are now yours

Either the bank has found out your wife died and now wants to cancel the mortgage, with a request you pay off the outstanding amount by a set date, or more likely the initial mortgage was for a set number of years maybe (5 or 10 years) that now expire on the date they have given, so

If the above is right then what you need to do is contact the bank and ask for a new mortgage in your own name for the outstanding amount and will need to provide proof you are the legal owner of the property

If the bank does not give you a new mortgage then there are plenty of other companies to ask

 

[Swisaw]

If you are in a position to get a mortgage in your own name, this may be the best course of action.

If you can start the process and find a willing lender, this should satisfy the current mortgagee

I am sure there is a UKBF member (name escapes me) that arranges mortgages for self employed people. (The requirements are stringent)

It's worth a try.

Many thanks dear MY OFFICE IN CHINA. It is really not a big deal. I have cash enough to settle it immediately but I was planning to use this cash to add an extension, conservatory, to the house. At the worst scenarion, I differ the extension in favour of mortgage redeem. Wish you again to have an office in each city of China.

 

[MOIC]

It might be a good idea to get a small mortgage for tax purposes as well as the fact that interest rates are likely to stay low for the next few years (A brave assumption, I know).

Get advice from an accountant who should also point you in the right direction for getting a mortgage.

 

[Swisaw]

I have not read the original post

Are you saying your wife originally took a mortgage on the house you live in, but she died 5 years ago and in the meantime you have been paying the monthly payments

You have had probate and the house and all her things are now yours

Either the bank has found out your wife died and now wants to cancel the mortgage, with a request you pay off the outstanding amount by a set date, or more likely the initial mortgage was for a set number of years maybe (5 or 10 years) that now expire on the date they have given, so

If the above is right then what you need to do is contact the bank and ask for a new mortgage in your own name for the outstanding amount and will need to provide proof you are the legal owner of the property

If the bank does not give you a new mortgage then there are plenty of other companies to ask

Yes that is right. The wife took the mortgage. Mortgage time has not been lapsed and payments are in order of time, which about three more years to go. The moment I got the probate, I informed the mortgage company about the death of my wife with death and probate certificates.

As the mortgage monthly payment are on time, I believe the mortgage company can not force me to do any thing, which has a cost on me.

Many thanks
Kind regards

 

[john1989]

This is just a repeat of your last thread on the same subject.

I'm not sure why people post if they have no intention of listening to the advice.

 

[fisicx]

As the mortgage monthly payment are on time, I believe the mortgage company can not force me to do any thing, which has a cost on me.

Of course they can. The mortgage is not in your name. you have now told them about her death and they are calling in the mortgage because that's how mortgages work. You were advised to change the mortgage into your name and because you didn't the bank is asking for their money.

 

[tony84]

As the mortgage monthly payment are on time, I believe the mortgage company can not force me to do any thing, which has a cost on me.

The lender has no contract with you, they can not force you to do anything but they can repossess the house in order to get THEIR money back. Im not sure how that would work in terms of charges etc for court costs and bailiffs as you have no contract with them, but they may just take it from the equity and let you take them to court for what you think you are owed.

Ultimately, do you really want to get involved in litigation and a court battle with a bank?

They have given you 5 years, a court would side with the bank as they have given you a lot of time to sort your finances out. Its not just a case of making the payments on time and they will or should leave you alone, the reason banks have pages and pages of T&Cs is because it protects them in the event of certain circumstances. At the minute they do not really have that protection as the mortgage is not in your name.

Im not replying to this thread anymore as your just ignoring what you are being told by many people.

 

[Mark T Jones]

Have you discussed this with the lender? That's the obvious first port of call it

 

[Nala]

Mortgage - doesn't that translate something along the lines as " till death" or " death pledge" ? If it's in your wife's name then that's that.

Also you say they want it redeemed in June 2015, that's already gone, so the letter got stuck in the sorting machine for 8-12 months, in which case they have not acted. Or do they mean 2016? You've got 6 months to sort something out, that's fairly reasonable for a bank!.

Stop the mad-mad posts and concentrate on what's important in life, shelter, warmth and sustenance. Either transfer the house to you and re-mortgage for the 3 years, or settle the mortgage in full as you say you do have the funds for.

 

[Swisaw]

Many thanks for rvery one. It is not a big deal. But I am surprised why now, why they didn't do that five years ago when my wife passed away.

By the way, they have put the mortgage in my name but not the property. Some times ago I tried to put the property in my name, they didn't do it but did it with the mortgage. Now in their correspondence, the borrower is my name.

 

[ethical PR]

Have you made an appointment to go in and see them to try and resolve the issue?

If the mortgage is in your name the property deed should also have been transferred. Why did you allow the mortgage to be transferred without the property deed?

If the mortgage was in your name you must have know when it was up for redemption?

 

[Chris Ashdown]

I guess you will have to register the change of ownership yourself, I dont think its anything to do with the mortgage company

 

[ethical PR]

Sorry Chris, you are right I meant your solicitor. Mine did this for me, when I brought a property recently.

 

[Swisaw]

Have you made an appointment to go in and see them to try and resolve the issue?

If the mortgage is in your name the property deed should also have been transferred. Why did you allow the mortgage to be transferred without the property deed?

If the mortgage was in your name you must have know when it was up for redemption?

Many thanks.

I tried land registry but they couldn't do it because of the interest of mortgage lender.

They didn't tell me about putting the mortgage on my name. After I asked them to put the property and mortgage in my name, I noticed in their correspondence using my name as a borrower. I have no problem with that as I consider myself responsible for the mortgage

Obviously I have to discuss the case with them. So far they have written twice but I was waiting to find more information.

Regards

 

[fisicx]

Why are you going to the land registry? They won't change anything, go to the bank and make an appointment with the mortgage advisor.

 

[Swisaw]

Why are you going to the land registry? They won't change anything, go to the bank and make an appointment with the mortgage advisor.

Well that is what I have to do. I don't have other choices, do I?

 

[fisicx]

Yes. Go to the bank. They are the people who hold the deeds to the house.

 

[David Griffiths]

The bank is very likely using your name as the borrower as the personal representative of your late wife. I have never come across a case where the name of the lender is different from the legal owner of the property

You have to arrange for the transfer of ownership of the property, This would normally be done by the solicitor handling the estate, which makes me think that perhaps you didn't use a solicitor. The transfer of ownership can only be done with the informed consent of the lender. Either they have to agree to accept you as a new lender in your own right, or you have to redeem the mortgage before the transfer can be made

The lender has been very patient in waiting five years while nothing has been done and is completely within its rights to call in the loan

 

[MOIC]

I have never come across a case where the name of the lender is different from the legal owner of the property

Either they have to agree to accept you as a new lender in your own right

You mean "borrower"?

 

[David Griffiths]

You mean "borrower"?

Indeed!

 

[Mark T Jones]

Well that is what I have to do. I don't have other choices, do I?

Absurd. The starting point should always be discussion/negotiation with the other party

Would it be unreasonable to assume that the lender have actually been trying to resolve this and you have been either ignoring or fighting them?

 

[fisicx]

I suspect he has been ignoring the problem. None of his post suggest he has actually been and spoken to the bank.

 

[Swisaw]

Many thanks for all the replies.

I didn't reply to the lender immediately because I wanted to know my position better. Today I sent them a first class post letter.

Yes, I am a borrower as personal representative.

To put the property on my name, I wrote to land registry but they couldn't do it because of the interest of the lender. I wrote to the lender, they told me to ask advice of a solicitor, which led me to involve with two convayancers from the hell.

The first conveyancer from the hell, after explaining full details for him and asking him only if he was 100% sure to put the property in my name to handle the case, told it was possible without any problem.

He gave me a quote and asked for £100.00 in advance, which I paid immediately. After he got his loot, he told me a solicitor would call me in one hour. No one called me after over 24 hours. I contacted him. After that the following day some one called me. She got all the details and told me she would come back to me soon. After that I didn't hear from hear for two months. So I complained to the first solicitor from the hell. Later he sent me an email telling she, the appointed convayanecer, has been trying to contact you for many time. I told him it was not true. So I telephoned the appointed convayencer from the hell and gave her a piece of my mind. After that she asked me to send her certain documents. After a while she came back to me and told me the lender wouldn't agree and asked for £120.00 her cost. Again I gave her a piece of my mind and branded her as deliquent. Because my instruction was quite clear, to handle the job, only if they were sure they would put the property in my name.

I agreed to pay her £20 because I had already paid £100.00. she threatened me with county court. After that she identified herself to be from a different company solicitors and the £100.00 I paid gone to a different solicitor company. I couldn't contact the first one, who scammed me. I lost his contact and told the other one to go to the county court if she was brave enough but she didn't dare.

 

[fisicx]

Don't write to them. Go to the bank and arrange an interview. They have already written to you asking for the balance to be paid so you need to talk to them.

You don't need a conveyancer either, no idea why you went down this route. Go to the bank and talk to them.