Mortgage Arrears caused by benefits shortfall

[PlanB]

Re: Reclaiming Mortgage Arrears Charges

Bloody hell £20 fee charged for copy of mortgage statement.......

In that case why not send a SAR which is only £10 and you'll get everything the lender has on its files including the original Ts & Cs (if you've lost your copy) which should spell out exactly what they can and can't charge you for writing letters, late payment penalties etc. The statements will also show you what date the interest was charged on the mortgage, and what date the DWP payments were credited so you will see if there is a mis-match going on.

But you've already made a formal complaint to the lender only last month and the initial response said that you could contact them to add any further information you would like them to consider during their investigation. So why not ring them up and ask for a free copy of your statements in order to clarify your complaint

[transformer999]

Re: Reclaiming Mortgage Arrears Charges

Thanks di & planB....yes I did receive my SAR but the breakdown of payments (debits & credits) are dated only to 31 March 2012.

As my SAR was only recent it should have detailed a full breakdown of everything. I am going to look through this deeper....because so far non of the sums are adding up.

Your right also and that I should contact them for this additional info....

I am going to start a new thread over in the Debt & Housing section planB.....is that alright?

[PlanB]

Re: Reclaiming Mortgage Arrears Charges

I received another arrears reminder letter from Paratus saying that I am now £970.57 in arrears.

I have been checking my credit file and according to that I am in 2 months arrears. All this is because the DWP pay late my mortgage interest. As you know I have on going compliant going with Paratus about the charges and adding the acceptance fee twice to my account.

I have attached a printout of my credit file so you see this...I am just thinking how the hell I am in £970.57 arrears? It is important and better to nip this in the bud as this amount is rising month by month and god knows what for.

I don't know whether God knows but I might have a clue if that helps This may relate to when you first started to receive SMI from the DWP.

Up until January 2009 the amount qualifying for SMI payment on a mortgage was capped at £100k and I see your mortgage was £105k at the beginning. This could have created a shortfall being seen as arrears (because they are).

SMI is not paid immediately there is a waiting period of 13 weeks from your application until the payments kick in. Could this have caused the shortfall/arrears situation? Before January 2009 that waiting period was a horrific 26 - 39 weeks so did you claim before 2009 ?

Check this out: http://www.direct.gov.uk/en/MoneyTax...come/DG_180321

[transformer999]

Re: Reclaiming Mortgage Arrears Charges

I have been receiving help with my mortgage payments since 2006.....before they used to pay enough so that there was no shortfall....but I think last year or the year before the benefits made cuts to peoples interest payments I was one of those effected...as the payments the DWP were making reduced.

Maybe that caused a shortfall? may just be...

[PlanB]

Re: Reclaiming Mortgage Arrears Charges

I am going to start a new thread over in the Debt & Housing section planB.....is that alright?

No need, you've already arrived thanks to a little help from Flower

[PlanB]

Re: Reclaiming Mortgage Arrears Charges

I have been receiving help with my mortgage payments since 2006.....before they used to pay enough so that there was no shortfall....but I think last year or the year before the benefits made cuts to peoples interest payments I was one of those effected...as the payments the DWP were making reduced.

Maybe that caused a shortfall? may just be...

Isn't this mortgage in joint names with your OH Normally his income (or no income if he's on benefits too) would impact on the amount of any SMI entitlement, so did you get a special deal with the DWP on the basis that you have filed for divorce and he is no longer living at the property

[transformer999]

Re: Reclaiming Mortgage Arrears Charges

Yes I did as I informed them we were not together...

[transformer999]

Re: Reclaiming Mortgage Arrears Charges

Thanks FP....just takes me back to square one as I need to know exactly what these arrears are for? no point in making an SAR as I already made one recently and received.

Next thing I guess is try and sift through all the payment history and try and calculate how these arrears were made...and if they truly are for the shortfalls each month?

I was wandering before the amount escalates would it be wise if I asked Paratus to capatalise the arrears? then after I can try and deal with everything together....as I am currently already dealing with another possession hearing.

[PlanB]

Re: Reclaiming Mortgage Arrears Charges

The DWP pay £164.76 towards the mortgage and my mortgage is approx £250'ish a month...it has occured to me that I have not been paying the shortfall...oh shitty shite!!!!!!

^^^^ Is this the reason for the shortfall The DWP payments are £86 per month less than the interest being added to the loan by the lender from what you say

[transformer999]

Re: Reclaiming Mortgage Arrears Charges

My mortgage is interest only...so I guess this can only be that the arrears that they say I owe is most likely to be for all the shortfalls?

If so then it would be better to get an arrangement plan together (bloody great) to start repaying them off...or could I ask them to capatalise them?

Seeing as all I am waiting on so that I can is my CRB to return which should hopefully be tomorrow or the day after,,,,then I can start work asap....as that is all my manager is waiting then she will give me my hours and proper work contract.

[PlanB]

Re: Reclaiming Mortgage Arrears Charges

I have been receiving help with my mortgage payments since 2006.....before they used to pay enough so that there was no shortfall....but I think last year or the year before the benefits made cuts to peoples interest payments I was one of those effected...as the payments the DWP were making reduced.

Maybe that caused a shortfall? may just be...

That could be the answer to your question

Perhaps your quarrel is with the DWP and not the lender. Get the DWP to send you a statement of SMI paid as far back as they will allow you to have the information (they shouldn't charge you for this) so you can see what's been going on.

Most changes to benefits are not retrospective if there's a change in legislation. But if your payments were reduced due to your change of circumstances then that will be a different matter. What was changed and why because you can usually appeal if it's the latter, although it sounds as if you're way out of time to do that if it was a year or two ago

If it was me I'd ring the lender and tell them that you are looking into the reason for the arrears seemingly caused by the DWP shortfall because it's comes as a shock since you thought everything was being paid Tell them you'll need a month to get the paperwork together. That note will be on your file if they start any funny business.

[transformer999]

Re: Reclaiming Mortgage Arrears Charges

Thanks planB I think that kinda makes much more sense seeing as you put it like. This is the last letter I received from Paratus:

They said they would get back to me within 4 weeks which approx 10 days away. I was thinking should I wait to see what their response if first then if is the DWP shortfall...I will then do the above.....because I also complained about their charges and I need to know if they are included in the £900 or so they are asking for arrears?

See...until I get a response to my complaint I was thinking would it not be better to wait? Mind you I could just drop them a line or two and tell them that I have only become aware of the payment shortfalls and am contacting the DWP for further information....so this way Paratus will see that I am also serious about sorting out my arrears....as you say will come in handy if they do any funny business....lord knows I don't need any of that anymore.

Thank you for your letter received on the 18 September 2012.

I am sorry that you are unhappy and would like to know that your complaint is being investigated in accordance with our internal complaints procedure. I have enclosed a leaflet for you which explains how this procedure works.

I will examine your complaint in detail and supply you with an update on our progress within the next four weeks. However, if you feel that you have anything you wish to add to your complaint, or you would like to explain any matter of your complaint further, please do not hesitate to contact me on the number below.

Yours sincerely


David Arfield

[transformer999]

Re: Reclaiming Mortgage Arrears Charges

I think the best thing to do first is to write or call the DWP and ask them when they reduced my interest payments to Paratus. That way I will be able to calculate the total shortfall amount with the amount Paratus have calculated?

I will also write to Paratus and inform them that I am requesting information from the DWP about amount they have been paying and then when I get their response to my complaint and all the info from the DWP I can be in a better position to understand if it my fault...more than likely it probably will be....but I am going to try and nip this in the bud before things go any further,

[PlanB]

Re: Reclaiming Mortgage Arrears Charges

That just looks like a standard holding template letter from the Customer Relations team. It simply means your complaint has joined a queue

You need to keep a line of communication open with the Collections Team when you're in arrears because they have their own escalation process which is largely dictated by a database which spits out letters when you've missed a certain number of payments (measured as months in arrears) and before you know what's happened there's a summons for possession on the mat. If you get a conversation going now (don't wait a month) you'll get a human being to help sort this who can put a *stop* on your account instead of computer based negative decisions

[transformer999]

Re: Reclaiming Mortgage Arrears Charges

Thanks planB I will call them this morning and post up.

There has been one thing that has been playing on my mind since I took out my mortgage with Paratus...(previously GMAC) and I know I may be flogging a dead horse here but nevertheless I am just so gutted how I ended up with an interest only mortgage.

I will have to start a new thread on how that happened as it does not involve mortgage arrears.

One more thing I need to find out and that is if any charges are included in the £970.57.....offices open at 9.00am and I will call the Collections Team then....after I will call the DWP to find out exactly what date they started paying reduced payments towards the mortgage.