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Posted: Sat Dec 03, 2011 1:52 pm
by ssheppy1973
We have been in an IVA since March this year and have just received a letter from our mortgage company saying we have been overpaying our mortgage since Sept 2008 until now and they owe us nearly £7000. Can Payplan ask for some of this money?
Posted: Sat Dec 03, 2011 1:56 pm
by Broke of London
I would have thought it would be captured as a windfall. x
Posted: Sat Dec 03, 2011 2:07 pm
by kallis3
It probably would but I wonder why the mortgage company haven't just taken this off your balance and just adjusted your payments from now.
Posted: Sat Dec 03, 2011 4:30 pm
by KAYKAY
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by kallis3
It probably would but I wonder why the mortgage company haven't just taken this off your balance and just adjusted your payments from now.
I would be inclined to ask my mortgage company to do this.. however would need to check if this is allowed with your IP.
Posted: Sat Dec 03, 2011 4:44 pm
by kallis3
I think I'd want my mortgage company to do that.
Posted: Sat Dec 03, 2011 6:25 pm
by Broke of London
I'm not sure the creditors would be too happy about someone diverting an asset away from the pot!
If the mortgage co didn't offer the option of a rebate thats different as there is nothingto give the creditors.
Posted: Sat Dec 03, 2011 6:27 pm
by kallis3
I'm just really surprised that it wasn't taken off the capital anyway, I'd have thought most mortgage companies would have done that.
Posted: Sat Dec 03, 2011 6:30 pm
by Broke of London
I don't know much about mortgages but I suppose they can't just hang on to money they charged in error.
Posted: Sat Dec 03, 2011 6:38 pm
by kallis3
Possibly not - would be good to have the choice though.
Posted: Sat Dec 03, 2011 7:06 pm
by Broke of London
The problem in an Iva is that presumably once you have the choice, it becomes an asset available to creditors and you can't then choose to repay capital.
Posted: Sat Dec 03, 2011 7:16 pm
by kallis3
You're probably right!
My mortgage rate is done at the start of the year and doesn't change for the next 12 months, regardless. If the interest rate goes up then I lose out obviously as the capital won't change much.
If it goes down though then I do win and more is paid towards the capital.
I've never been given an option when that happens.
Posted: Sat Dec 03, 2011 8:36 pm
by Broke of London
The worst part about an iva must be having a sniff of money and having to hand it over. It's a bitter pill however much one appreciates the second chance an iva offers.
Posted: Sat Dec 03, 2011 9:15 pm
by footiemad
Is it a repayment mortgage? If so it could reduce the term of the mortgage considerably. Just a thought x
Posted: Sat Dec 03, 2011 9:26 pm
by kallis3
If it was interest only that might make a difference.
Posted: Sat Dec 03, 2011 9:33 pm
by footiemad
Yes thats right Jan - if its interest only it can only reduce the amount outstanding. I think this is a little tricky because if ssheppy is currently in negative equity, for example, a lump sum of £7,000 could place her/him in the position whereby they would need to release equity or extend by 12 months. Also I reckon that as the mortgage company are saying that this is an overpayment, then this would have increased the monthly surplus payable to the IVA had it not been overpaid therefore making the £7,000 due to the IVA pot. I'm certainly not an expert on this but its just a thought x