surplus cash after repossession

[gettinglifeback]

Morning folks, hoping someone can shed some light on current situation, home was repossessed August last year by second charge lenders (g e money ) after many problems with them over the years, house was sold before Xmas, received a letter from santander end of December, explaining they had received just under £50k by way of telegraphic transfer from remitters, obviously from sale of house, which was credited to my mortgage account.

 

Then yesterday I received a letter from santander informing me that I had paid off the mortgage in full and the account was now closed ans thanks for having had your account with us, please cancel your direct debit or standing order, the letter then goes on to say the details of the payment as follows

 

Capital. £41k

Interest. £5

Mortgage account fee. £85

Total. £41,090

 

Which is way under the £50k credited -

 

Would I be entitled to the remainder of the credited amount, I was not expecting this, but will certainly help my current situation.

 

Any advice will be greatly appreciated, thanks in advance.

[honeybee13]

Hello and welcome to CAG.

 

I'm not one of the forum experts, but from what you say I don't see why Santander should hang onto the money. Have you asked for it back?

 

I expect the forum guys will be along later.

 

My best, HB

[gettinglifeback]

Hi, and thanks for the warm welcome, I have not asked for the surplus amount, and only found this out yesterday and wondered why this was not mentioned in latest correspondence , I guess all or any charges ,arrears are included in total amount deducted as other fees are, well will be nice to hear further good news, thanks again

[honeybee13]

I just found this on the CML [Council for Mortgage Lenders] website.

 

If the sale of the property results in a surplus after all the money owed to the lender and any other secured lender has been repaid, then this surplus is returned you. Your lender should notify you of the surplus but if you cannot be contacted, the money will either be held by the court or your lender until you can be contacted.

 

http://www.cml.org.uk/cml/consumers/guides/debt

 

HB

[jackieandwayne]

This happened to my friends - they split up, were in dreadful debt, and they just walked away from the property. The house was eventually repossessed. Anyway, the female was traceable, the male just disappeared. She kept getting these letters from a firm of solicitors, and she was too afraid to open them as she thought she was going to get stung for thousands. When I eventually forced her to open them, she was £18K richer, they had been trying to get a response from her so that they could pay this money back. Apparently the property went for more than might be expected at auction, so after all the fees etc, this was the residue - so I expect you'll hear from a solicitor in due course, with a cheque! In any case, if you get a letter which is clearly from a solicitor, don't be afraid to open it - just in case!

[gettinglifeback]

Hi, and thanks for the replies, I phoned santander ans was advised that they had returned the surplus amount to the solicitors who were acting for the second charge lenders, so I called them who denied that they had received any payment from santander.

 

So I call santander back in the hope that any cheque could be cancelled and amount transferred into my current account, which they said they could do but neeed to talk to the acting solicitor first, which should take place today, I will receive the surplus if they do not require the surplus, I am not sure how this might pan out, but still in hope that it is returned to myself.

 

If for any reason they decide to request the funds available, I will be contacting the second charge (g e money) to ask for a full break down of the sale of the property, as at the moment the second charge do not know my current address.

 

I guess if nothing comes of it, at least I have taken my head out the sand , and after spending last night going through old paperwork and statements of account , believe I have many charges ,DD charges etc, to claim back, I was disputing g e handling of my account, but called it a day after walking away, after the courts seemed to side with these after many lies and with holding documents.

 

I now feel I should readdress this matter, and seek back all the charges etc, as they was many under handed things g e had done whilst administrating the account including increasing the interest rate without notification and adding the extra amount to the account balance, building up arrears which eventually got out of hand.

 

Think its time to restart the fight as nothing to lose this time round, well thanks again for the replies, will update today's outcome, fingers crossed lol

Edited January 17, 2014 by gettinglifeback

[f16]

Check for PPI as well on mortgage and secured loan

[gettinglifeback]

Hi f16, I am pursuing the ppi which was attached which is in the hands of ombudsman, that will be decided this week coming , this was been looked into under financial hardship and just appealed assessors decision, that is a interesting story in itself, I will post up after the revised thoughts of assessor, as learnt a lot from fos , and how they side with these institutions which is wrong,

 

As for the surplus, interesting developments have transpired, and feeling rather positive about the way I see things and the possible route forward in claiming back the surplus amount, regardless if the second charge have a shortfall, I have spent the weekend reading and have a plan moving forward, the way these institutions work is they downfall.

 

I hope my situation and reckoning helps others in moving forward and getting some form of justice after the heartache of repossession and shoddy behavior of these people

Edited January 19, 2014 by honeybee13
Pejorative term.

[f16]

gettinglifeback, I'm glad things are looking up for you; I've been there... The full "nine yards". At some points you think all hope is lost, but suddenly out of the blue, from no where, help and a new found inspiration that encourages you to get up from your knees and move on, with help from people("name tags") who want nothing in return.

This site has changed my life. I'm now fighting back for all the excess payments charged.

I wish you the best of luck.

[gettinglifeback]

Hi there again folks, thanks for previous message f16 , I have been waiting on documentation from santander after them trying to fob me off and hiding some facts regarding to redemption figures after the posssession , I am very surprised at the way santander are conducting themselves and can not believe the way they have went about explaining the surplus amount which I was expecting, they have levide quite a few different charges to eat up the surplus cash, should I start a new thread or just continue in this one, thanks for all the help so far

[f16]

I would continue on this thread. It's still on the same subject.

Don't let them "munch" your cash.

[gettinglifeback]

Well here goes , think I can reveal full details as nothing to really lose now - hopefully someone can advise what is right and what seems to be wrong as I can not get my head around the figures, as just do not match up-

 

Received a notification from Santander dated 21-12-2013 - Telegraphic Transfer Received

Received amount £49,33765

Total charges £0.00

Total amount credited £49,337.65

 

The transfer was received from G E Moneys solicitors after possession of family home / G E second charge - Santander regulated mortgage / first charge

 

I never give this much thought as was only just getting over the whole situation and trying to get my life back on track.

 

Then out the blue on the 10-01-2014 (some 3 weeks later) received another letter from Santander advising that the mortgage was paid off in full and account now closed.

The details of payment are as follows:

 

Capital £41,036

Interest £5.32

Mortgage account fee £85

Total payment £41,126.34

 

I contacted Santander to ask about the surplus amount of £8,211 which had not been accounted for - which was part of the telegraphic transfer (£49,337.65)

 

I was told that the £8,211 had been sent back to the solicitors acting for G E Money - I requested contact details for the solicitors in question, I then contacted the solicitors to confirm that such a transaction had taken place , I was advised that no transaction had taken place and that I should contact Santander, as the amount in question was a high figure to be missing , as the solicitors acting for G E , would request an upto date redemption figure from Santander before the completion and telegraphic transfer.

 

I contacted Santander after this phone call and informed them that the solicitors in question had not received any such cheque for £8,211 as stated in earlier phone call when advised this had been sent by way of cheque. I was advised that the cheque had been sent the on the 10-01-14, I asked for the cheque to be cancelled and the surplus amount to be credited into my personal Santander account, I was then advised that this could not be done as it can take 6 days to clear solicitors account , and they needed to find the cheque in question - this was the 15-01-14 , as it was late in the afternoon I was advised to call the next day.

16-01-14 called Santander again , and asked if they had found the amount in question £8,211 or if the cheque had been cashed, if not to cancel it and deposit the amount into my account, I was informed they could not do that, until they talked with G E solicitor to see if they required the amount in question, so advised to call the next day. I was starting to think that Santander were hiding something and not been transparent like the regulations state, as I could not get a straight answer from them.

 

I called the next day 17-01-14 - and again had to explain the current situation and if the amount had been cashed by the acting solicitors, a figure of £1,216 was mentioned and confirmed as sent to solicitors on the 10-01-14 - I then asked about the £6,995 as now we had a figure the solicitor received - I was left on hold whilst the call handler sought advice from her senior, after a wait I was advised that it will need to be investigated, I advised her that the clearence of the mortgage was due to repossession and that I am entitled to a breakdown and they duty to be transparent, again I was advised to call back.

 

The weekend came and went and on Monday 20th January ( some 5 days later from first contact) I called again and was advised that £1,216 had been sent to acting solicitor for G E , after questioning the £6,995 missing , and call handler avoiding the facts, after been placed on hold again it was stated that £6,686 had been used for charges - ?????? charges , then why did redemption statement not state this, plus it is still short of £314 from the £6,995 which Santander have not been willing to disclose, I asked for a full breakdown of such charges.

Edited February 4, 2014 by gettinglifeback

[gettinglifeback]

I did receive a breakdown , but does not make sense to me and do not understand why these facts were never pointed out in phone calls, or why it was stated that £8,211 was sent to G E solicitors on the 10-01-14 , when obviously this was not true and part of the concealment of the true facts, I have tried my best to understand them, but they do not add up.

 

Balance of mortgage as at 01 January 2013 £41,719.54

Balance of arrears as at 01 January 2013 £3969.49 ..... ( please look below as not correct)

Total mortgage outstanding on 01 January 2013 .... £45,689.03

 

Less payments made during 2013 £930.00 ..........( are these not included in arrears)

Litigation costs debited on 07 January 2013 £260.00

Litigation costs debited on 05 September 2013 £957.20 .......... (litigation for possession would lay with second charge?)

Interest from 01 January to 20 December 2013 £1,917.13 ......... ( I was in a payment plan till August 2013)

Interest due on arrears for 2013 £143.06 ..........( In payment plan ? )

Mortgage account fee £85.00

 

Redemption amount due on 20 December 2013 £48,121.42

 

Amount received from solicitors on 20 December 2013 £49,337.65

Refund issued to solicitors £1,216.23

 

Balance on mortgage £0.00

 

.........................................................................................................................

 

As for the above arrears on the 01 January 2013 -

 

The arrears were £3,896.42 as of the 01 January 2012 - and then I went on to payment plan with £22.19 payments to reduce arrears -

Arrears balance on 01 January 2013 £3,804.34 - I continued on payment plan throughout 2013 till possession

I was paying interest only on this account - but have noticed that interest was also getting charged on arrears around £900 , whilst I was making the extra payments to reduce arrears?

 

I am very confused and all help, thoughts will be greatly appreciated , as I continue to get mine and my families life back on track, best wishes and thoughts

[gettinglifeback]

Have I posted in the right section, looking forward to replies

[honeybee13]

Have I posted in the right section, looking forward to replies

 

Hello, yes I think it's the right section. But not everyone on the forum will know the answers, especially to quite a complex post, and some of the people have day jobs.

 

Please bear with us until people in the know are able to get here.

 

HB

[gettinglifeback]

Afternoon HB and thanks for the reply, thought I had posted in wrong section due to inactivity, hopefully as the weekend approaches someone will arrive with all the answers , thanks again

[Lea_HTH]

How much was the property sold for?

 

How much was the loan from GE Money?

 

You seem to be misunderstanding the simple fact that whilst GE Money gained the possession order, Santander held the first charge, so it is highly likely all monies (or at least suficient to cover your debt to them) would be transferred to them on sale, for them to take the monies they are owed, the remainder would then go back to GE Money to take their share. There are inevitably costs involved with a repossession - and just because Santander did not gain the PO, does not mean they had not started proceedings, hence the costs referred to above.

 

They are entitled to charge interest on the arrears - your terms and conditions would refer to that.

 

If there is any money left after the discharge of the debts secured on the property, then you will receive that from the solicitor who handled the sale.