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I have mortgage arrears, can a creditor take my inheritance?

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6 posts • Page 1 of 1

I have mortgage arrears, can a creditor take my inheritance?

Postby Buddy16 » January 6th, 2017, 10:11 pm

Hi,

I am new to this forum and just looking for a bit of advise. I have mortgage arrears, have tried to come to suitable arrangement with the bank in the past ( sent in detailed financial statements etc), the last time it was sent it I had just got full time employment and all looked good on paper, however I was playing catch up. Had managed to make lower repayments for six months in order to reach a settlement and move forward but they came back with a one liner saying the mortgage was deemed to be sustainable and what the new monthly repayments would now be but no mention of plan for arrears.
I have requested this info for months to no avail and am currently not in a position to make any payments having lost my job.

I am happy to begin payments again when I am in a position to do so but want to also make some deal with regard to the arrears.

I am due an inheritance at some stage and I am wondering whether they can just go directly and take cash from this whenever it issues? When probate issues, does the grant of probate give details of beneficiaries to the bank who holds the funds of the deceased? Does the bank releasing the funds receive a copy of the will which names the beneficiaries?

We are living week to week but hopeful for the future once we can resolve this issue. I just need to know that my inheritance will be safe or how to go about safeguarding it when the time comes?

Thanks
Buddy16
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Re:have mortgage arrears, can a creditor take my inheritance

Postby Debtwizard » January 7th, 2017, 1:58 pm

Hello Buddy16 and a very warm welcome to the DebtWizard IVA and Debt help forum.

I am not a solicitor and can not give you legal advice, however I can pass on my experience to you.

I presume you are asking the questions in relation to mortgage arrears.

Your Q - I am due an inheritance at some stage and I am wondering whether they can just go directly and take cash from this whenever it issues?

My A - Not unless the court has issued authority to do so, I take you you are referring to mortgage arrears. Have you had any court action regarding the mortgage arrears and if so at what stage are you. Usually the mortgage lender will suspend the repossession of the property and if no further agreed payments are made it would repossess the home.

Your Q - When probate issues, does the grant of probate give details of beneficiaries to the bank who holds the funds of the deceased?

My A - Usually the funds are paid into either the executors bank account set up as 'executors account' at their own bank or in the solicitors client account.

You Q - Does the bank releasing the funds receive a copy of the will which names the beneficiaries?

My A - No need as the funds are usually paid into either account as above.

Trust this puts your mind at rest.

Have you taken any advice regarding your mortgage arrears from someone like the Citizens Advice Bureau?

Best wishes

Mike
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Re:have mortgage arrears, can a creditor take my inheritance

Postby Buddy16 » January 7th, 2017, 4:46 pm

Hi Mike,

Many thanks for your reply. Yes, you have thankfully put my mind at ease!

Yes, its mortgage arrears and we are not at the court stage yet. Basically, I was offered a split loan arrangement with a write off of a portion of the arrears, a couple of years back but at the time I could not even afford the monthly payments they proposed, so I had to decline it and go back to the drawing board. I got advise from a financial adviser as arranged through the lender and at that stage I felt was my only option, however following the advise of the adviser we put together a proposal to the lender, not accepted. We have had years of back and forth, many SFS's have been sent in, each time as my circumstances changed. We managed to make interest only payments for approx seven months and following the last SFS they came back to me and said it was sustainable ( we had moved mountains to change our lives for the better). I am waiting for them to answer some queries in relation to the arrangement, so I dont have the peace of mind that a suitable arrangement has been made yet.

I really want to get a sustainable arrangement put in place without risking sinking my inheritance in the arrears, don't get me wrong I don't mind chipping away at the arrears with a small lump sum payment off them and then higher monthly repayments over a course of time but I cant see my family living hand to mouth again.

I have not been in touch with Citizens advise ( currently live abroad) and to be honest I don't know where or who I should go to to get a plan/proposal drawn up or even to just secure my inheritance. Would my solicitor be my first port of call?

Thanks again for your reply, I really appreciate it.
Buddy16
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Re:have mortgage arrears, can a creditor take my inheritance

Postby Buddy16 » January 7th, 2017, 9:41 pm

Hi Mike,

I just realised I didn't make it clear that the property etc is in Ireland ( South) as I thought I was posting to an Irish forum! I currently live in UK. I am hoping the same process would apply in Ireland re my previous questions? Would you know anyone who has experience with the Irish system who could point me in the right direction re my next step?

A few years back I felt that bankruptcy ( in UK as it is shorter than Ireland, 3 years as opposed to 5!) was my only option but after seeing the financial advisor he advised it should be my very last option when no other options remain. As it turns out we moved here for a better life for our kids and better job prospects and with literally only a couple hundred euro in our pockets, secured good schools and jobs and we couldn't be happier now that we made the move and didn't go down the bankruptcy route,but its been a real struggle up to this point.

Thanks
Buddy16
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Re: I have mortgage arrears, can a creditor take my inherita

Postby Debtwizard » January 10th, 2017, 1:54 pm

Hello Buddy16

There is no immediate need to consult a solicitor to try and track your inheritance, the executors (usually solicitors) of the deceased estate will make contact with the beneficiaries (you) and notify of the inheritance. How long ago did the person concerned die and how much inheritance are you expecting?

I believe it will be a good idea to get advice as to what your options are, I will post back later re this with details of where you might consider speaking with. In the interim do you have any other debts such as credit cards etc apart from the mortgage arrears?

Is there any equity in the property in Southern Ireland (difference between the mortgage plus arrears and the value of the home).

Best wishes,

Mike
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Re: I have mortgage arrears, can a creditor take my inherita

Postby Debtwizard » January 10th, 2017, 7:16 pm

Hello Buddy16

Just one quick question, how long have you been resident in England, and were relocated or is this a permanent move?

Subject to your answer you may come under UK Insolvency law which opens up some avenues for you.

Best wishes,

Mike
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