I am looking in to our 4th year clause, its the usual get a remorgage offer and pay any proceeds in to the iva to finish it early !, obviously as we are all aware this is nigh on impossible in the current economy and i see little point even applying to anywhere when I know the answer, I called my IVA company RE10 to ask their advise and they pretty much agreed with me that it was a pontless to just go through the motions to be refused.
They did point out however that I could raise some cash myself (£5000 re the original proposal but this was ammended to all proceed gained from a remorgage)and they offered to get a broker to get in touch with me, what I need to know is can I be forced in to taking an offer of a loan at a high rate or can I ask them to conviene a meeting of creditors instead with a view to extending the iva by 12 months instead as is the norm?, its obviously going to be cheaper for us in the long run to extend the iva and I see no point get our selves back in to debt paying of a high interest rate loan as it defeats the original object of the iva !
Our iva was approved in April 2007 Our original debt is around £50000 our monthly payment is £287, ,Morgage settlement would be around £90000 and our house is worth around £100000, we have had 2 payment breaks.
Sorry to babble on and hope i'm understood.
Any help or advise much appreciated.
Thankyou
Steve
Hi Steve, I'm not sure they can force you into taking an offer of a lona at a high rate and in this climate surely it's best we take the 12 month extra payment route for all.
One of our knowledgeable experts will be along soon to offer some accurate advice.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
I guess it really depends on the exact wording of the equity clause contained in your original proposal or in the modifications to the proposal.
If you are expected to introduce a fixed sum into the IVA then chances are you will be looking at extending for a year.
If you are expected to introduce a sum of money to address equity in your home then it really depends on whether or not you actually have any equity to address in the first place? If there is no equity then you really should not be expected to address it and the IVA should conclude at the specified term.
If you do have equity then the chances of obtaining funds secured on your property are, as you already say, non existant and as above you will most likely be expected to extend your IVA for a further 12 months.
Look at your proposal, is the expected sum specifically to address equity or is it just a sum of money expected from you toward the end of the IVA? if it's to address equity then you need to get a valuation and redemption figures of mortgages/loans secured on your property and see if this sum is reasonable, for instance if you only have £2000 equity at an LTV of 85% then it is not fair to expect you to address equity of £5000 that you do not have.
you are doing the right thing by communicating with your IP though, it's very important.
Sorry Tab did no one tell you an iva has the same underwriting status as bankruptcy? the same restrictions apply. You will not get any lender to mortgage you since all adverse lenders packed up to the good 'ol us of a 3yrs ago . you will pay another 12 months and possibly a fee included for a variation creditors meeting. Harsh but fact
If there is a fee for a variation meeting then this is factored in to your IVA payments so you don't have to pay anything upfront.
You are unlikely to be able to remortgage but you have to try and send the rejection letters off to the IP. If you have to carry on for a further period then that has to be better than remortgaging.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
yes but you still have to pay for the meeting over 12 months so that's still paying. the preference for paying an extra 12 months depends on how big the payment is i suppose.I can't understand why iva companies still put this re mortgage clause in as it's meaningless, unless they know something about mortgage lending that we don't!
shalaw, I don't see why you have such a problem with the remortgage clause.
We enter the IVA to pay back as much to our creditors as possible. The IVAs which are done these days are protocol compliant and the extra 12 months is standard so there is no variation meeting needed.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Same here - I'll be glad to have the extra 12 months.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Thanks every one for your replies,shalaw I am happy to pay the extra 12 months, thats what I want to do instead of raise funds in other ways I cannot afford to pay.
Ivoryfalcon, thanks for your indepth response, our original proposal stated that we must pay a sum 0f £5000 in year 4 to conclude the iva, after the original creditors meeting it was revised and reworded to state that we most provide 2 morgage offers and accept the one that offered the most funds in to the IVA, this was to address equity as you state and they would take 100% of any cash raised.
A redemption figure for the morgage is easy enough but I realy dont want to have to go through the rigmarole of morgage applications and valuations knowing that its going to be refused, even the IVA company agrees that its pointless.
I don't know of any unfortunately. You can try your own mortgage company to start off with and then any other reputable dealer.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Tab - try using a comparasion site (Ie) moneysupermarket.co.uk - fill the few question and they may come up with sub prime lenders. Or even just google sub- prime lenders.
I'm happy that you are happy , but i speak to so many people who do not understand this clause and are lead to believe they will get a remortgage. I actually agree that 12 months is preferable but most people and it's there own fault are ignorant of the details in my experience in advising. They allway say'they didn't tell me that" They may have or not but it's an area that needs more prominence. As a mortgage advisor i would'nt get away with it.
As I mentioned elswhere Shalaw, my company discussed the various options at length, then provided me with a written summary of the conversation. So a) I had a chance to review it and ask further questions if need be, and, b) There is no arguement over what was and what wasn't discussed.
As a "customer facer" I am well aware that people rarely hear what is said at interviews and meetings. I often, when hearing a meeting I have attended being recounted by one or other party, wondered whether we had all been at the same meeting !!!
Quite often, at the point of entering an IVA or DMP, people are very distressed and I agree, some companies, possibly, do not explain as well as they might. But the good ones do.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
