recently widowed and cant afford mortgage

[supermum70]

Hi my mother in law has just lost her husband they both claimed disability and there is no equity in the house she cant afford the mortgage as her monthly income is 380 per month all her family are in the stockport area where she wants to go on the council housing list for a flat what would she be best doing unfortunately her husband didnt take any life insurance. we have looked at the option of either she takes the 3 months where she doesnt have to pay to give her a bit of time or just doesnt pay and wait for repossesion papers which i was led to believe would be more beneficial to the housing and woud give her maximum points or the other option would be to decalre herself bankrupt really i dont know what is best could someone please offer some help as time is of the essencs thanks louise

[leclerc]

Re: recently widowed and cant afford mortgage

Hi my mother in law has just lost her husband they both claimed disability and there is no equity in the house she cant afford the mortgage as her monthly income is 380 per month all her family are in the stockport area where she wants to go on the council housing list for a flat what would she be best doing unfortunately her husband didnt take any life insurance. we have looked at the option of either she takes the 3 months where she doesnt have to pay to give her a bit of time or just doesnt pay and wait for repossesion papers which i was led to believe would be more beneficial to the housing and woud give her maximum points or the other option would be to decalre herself bankrupt really i dont know what is best could someone please offer some help as time is of the essencs thanks louise

Has she considered putting the house on the market and seeing what the value is against what is owing? Roughly what is the difference between the amount she owes and the market price?
House Prices
This is a rough guide of houses sold using just the postcode(am not sure it has been updated since 2009 but might be useful as a guide).
She should speak with the mortgage company as well and explain the change of circumstances. Was there any mortgage payment insurance?

With repossessions the difficulty is that they will sell the house at a significant loss and still seek payment for the outstanding amount.

[enaid]

Re: recently widowed and cant afford mortgage

Hi supermum,
I would tell your mother in law firstly to get in touch with Welfare Rights see if they can help with any other monies that she maybe entitled to, there is this Bereavement benefits and widows' benefits - DWP and although it is dependant on NI contributions as you state they were both on disability then she may not be eligible but you can but ask.
Also if you have not already done so inform the mortgage co and keep them properly updated, have you asked about an interst only mortgage?

[CYNthesys]

Re: recently widowed and cant afford mortgage

Has your mother-in-law enquired about support with mortgage interest?

If she is of pensionable age there is not a waiting period.

[pompeyfaith]

Re: recently widowed and cant afford mortgage

also get her benefits checked as she will now be claiming as a single person and not a couple the CAB is a good place for this and other advice she may need