@herberkj So is it raising equity to give to creditors when you're not sure you'll recoup it in rising prices that is the problem rather than the mechanism by which equity is released?
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Broke of London
@herberkj So is it raising equity to give to creditors when you're not sure you'll recoup it in rising prices that is the problem rather than the mechanism by which equity is released?
Blunt answer, if equity in my IVA was included regardless of how it may or may nor have been included through remortgage, loans or whatever would have gone BR instantly based on todays protocal IVAs and reading this forum.
Which is a sad thing to say when I had a highly succesful IVA that as I said before gave creditors 40p+ more in the pound than BR.
Last edited by herbekj on Fri Jul 06, 2012 7:03 pm, edited 1 time in total.
Last Payment - November 2011 - Completion Certificate received 2 weeks after last payment, Removed from Insolvency Register within 4 weeks after last payment.
BOL I think you'll understand more about the fear of some of us in IVA's who are home owners if you look at current re-mortgage rates v loan rates v the loan rate that Annie has had to accept. Its a penal rate which has been organised by her IVA Company.....not an independant advisor. If this becomes the norm then IVA Companies will be getting into bed with sub-prime gamblers who will see IVA customers as easy pickings where the APR (effective repayments) will be of no ones concern and larger the better.
Last edited by Pennyless on Fri Jul 06, 2012 7:32 pm, edited 1 time in total.
I came into this world with nothing and still have most of it left!
I didn't realise the rates would be so different for two fairly similar products! Ryan is able to source secured loans for paying equity clauses so he might be able to find better deals and at least yu can trust that he isn't tied to a particular finance house. x
At the end of the day the bottom line is iva's are not what clients think they are!! Iva's are hard to adhere to, very restricting and a money spinner for many people!! Homeowners beware cos I do feel that creditors are not going to settle for anything less than crippling you!! Terms and conditions are going to change so all those thinking about it please beware!!!
Good point BOL......from what I recall Ryan has sourced some decent finance deals for other forum users. Wonder what his thoughts would be on Annies situation and the loan she is receiving.
I came into this world with nothing and still have most of it left!
Playing devil's advocate here - why shouldn't the creditors expect the best return possible? If someone owed me money I wouldn't be happy to write off a large chunk of the debt if they had a huge amount of equity in their property. I'm not suggesting that people should have to sell their homes, just that all sorces of equity release should have to be explored before the extra year applies.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Skippy
Playing devil's advocate here - why shouldn't the creditors expect the best return possible? If someone owed me money I wouldn't be happy to write off a large chunk of the debt if they had a huge amount of equity in their property. I'm not suggesting that people should have to sell their homes, just that all sorces of equity release should have to be explored before the extra year applies.
I do agree with some of your points but would you be happy with the terms of the loan that Annie is being guided (or is it pushed) into?
I do agree with skippy really on this one! Is it really fair to have alot of equity in a home and as soon as the iva has finished then u can sell and enjoy the money! Why should ppi become an asset during an iva but in some cases large sums of money in bricks and mortar not! Perhaps eventually money in your house may become an asset to which you have to give up whenever you may sell it!
If it was the only way I could keep my home then while 'happy' wouldn't be the right word I would do it. As Michael says the OP should be able to remortgage at high street rates in a few years in which case the interest won't be such an issue.
Indeed, creditors should expect and receive the maximum return possible from any debtor in an IVA. And yes, house equity should be released and used to bolster the amount that is achieved...but only by the means that the debtor expects, has been led to believe and thinks they signed up for, if not possible then the twelve month extension THAT MOST PEOPLE IN RECENT IVA`S BELIEVE, AND HAVE BEEN LED TO BELIEVE THEY HAVE WHEN ENTERING THEIR IVA`S should be triggered.
That is the point, it would seem that a new and extremely profitable way for some of achieving the equity clause is suddenly going to be manipulated onto many, when they had no idea this could be the case and certainly didn`t knowingly sign up for.
If it was EXPLAINED VERY CLEARLY from the outset of a debtors IVAproposal that this `third option` was a possibility, and a debtor KNOWINGLY and WILLINGLY signed their proposal FULLY AWARE OF ALL THE FACTS then fine - no problem at all, but it seems that some are in danger of having been hoodwinked, to put it mildly.
I wonder how many posting sympathetic views to this loan arrangement have already finished their IVA`s or are not homeowners???
Last edited by Goosed on Sat Jul 07, 2012 1:43 pm, edited 1 time in total.
"When the seagulls follow the trawler, it is because they think sardines will be thrown into the sea".
It is down to being advised properly when the IVA has been approved. One of the largest searched words pre IVA is consolidation. People would be happy to remortgage at adverse rates to clear their debts pre IVA but then do not want to release any once their IVA has been approved. As Skippy and Broke have said any secured borrowings are mortgages and it is bizarre that some posters would rather switch their entire mortgage balance to sub prime rates rather than take a small loan.
It`s not bizarre at all if, at the risk of repeating myself yet again, you were NOT AWARE that you would be forced down this loan route and assumed and thought you had signed up to TWO POSSIBILITES, REMORTGAGE OR 12 MONTH EXTENSION when the time arose.
Nobody can deny that this loan mechanism is going to be extremely profitable to some parties, and that is why it is being pushed, simple as that.
If this third option of a loan enforcement becomes more prevelant to debtors unaware of it`s place in their IVA because of `wording` or `mis-advise` then I imagine there will be many, many disputes and complaints against any complicit IVA providers.
Last edited by Goosed on Sat Jul 07, 2012 2:28 pm, edited 1 time in total.
"When the seagulls follow the trawler, it is because they think sardines will be thrown into the sea".
Lets face it Goosed, with the extra commission that these "loans" would generate, "some" IP's will rub there hands together if it becomes "protocol" that IVA customers "must" seek a "loan" (by whatever means) at the end of their IVA term.
Heres hoping that there will still be IP's out there that actually look toward the best interests of BOTH creditor and debtor.....not themselves and creditor.
PS: And why just stop at homeowners, after all surely the same clause in obtaining a loan at the end of an IVA could and would be used to generate a larger dividend for creditors from ALL IVA customers.....a slippery slope indeed.
Last edited by Pennyless on Sat Jul 07, 2012 2:43 pm, edited 1 time in total.
I came into this world with nothing and still have most of it left!
