Skippy i do agree with you about using some of our equity in the house to pay back our debts. I cannot tell you how many nights and days i spent thinking how we could release some money to pay them off.
We just could not get anybody to lend us anything.
I honestley do not look at our house as a money making machine. We have lived in this house six years now and have no intention of ever moving, unless forced to.In another five years there might not be any equity in it no one knows do they?
With regards to the small print in our proposal regarding equity release:
1: Any loan will NOT run longer than normal retirement age.
2: The loan payments will NOT be more than 50% more than the current IVA payment being made.
etc etc
Maybe im the only one with this view but i work bl**dy hard and pay loads of tax, tax which is being used to bail out banks etc who in my eyes have gambled away billions of working class peoples money and yet they are still rotten to the core.And yet we talk about them on here as they are helping us, i think not.
So i do not have a lot of time for financial companys with all their rip off charges.Half of our debts are probley loads of charges and interest etc so i cannot say i feel a lot for them.
You can see already creditors trying to work out another angle to get money out of the bloke on the street who has made mistakes by getting involved with the credit card people and loan companys and are in IVA's.
But we are doing pretty well with our IVA by doing overtime etc we are paying back so far about three quarters of what we owed, and hopefully more if things go well.
I know everything is not going wel for alot of people and i do feel for them. I would like to see a complete review of how IVA's are set up with people like Mel sitting on the panel because people like Mel seem to understand so much more about what people are going through when in the IVA.
The house prices may change but they may go up rather than down! They should agree a figure based on the value of the house at the time of proposal as this amount of equity could possibly have paid off the debt! To have an extension for 12 months possibly paying a relatively small amount doesn't seem right when there maybe thousands still in equity in the home which may have paid back the whole of the debt!
Just wondering than Franky, is it fair that somebody with no house run up thousands of pounds of debt and pays back a small amount, and yet someone with a house pays back much more because they have a house?
Lets be clear about this, buying a house is not a walk in the park. We have gone without loads to keep this roof over our head. Yes our choise, but why should the house owner pay back more than someone who has decided not to go down the house buying route?
I dont see anybody feeling sorry for home owners when the mortgage rate goes through the roof?
I cannot say if buying is better than renting i guess it depends on what suits you.
If they have secured the debt on theur house than thats another matter, but i understood IVA debts were all unsecured?
Is it fair then that somebody comes into an inheritance, lottery win or even redundancy pay and has to pay it into the iva but a homeowner with thousands of equity can keep all of it?? Harpic that is what I am saying! Sorry but I am not in judgement of any one persons circumstances but I have a feeling that the creditors are fed up with people keeping their homes with all the equity and are now rebelling by bringing in high rate loans! Like I said baldy if I had had the equity then I would have sold payed off my debts and started again without having an insolvency record to my name! I am sorry it's just my opinion and don't mean to offend anyone!
This thread seems to be going way off kilter, and some sort of definite split is emerging Homeowners v Non- Homeowners. But surely anyone agreeing that Annie1234 is being treated fairly by being pushed into a loan @17%APR (evidently being championed by her IVA company)are either missing some serious points, or just has a dim view on anyone wanting to stay in their own home and not go BR.
1 Was Annie given the proper advice in choosing an IVA in the first place?
2 Was Annie talked through the proposal and, did she have it "fully" explained to her?
3 Why haven't DFD joined in on this thread to try and explain their position on the matter?
This whole thing is making a mockery of the main selling point of an IVA. To protect your assets.
For us an IVA was the obvious choice because:
1) It is a legally binding agreement.
2) You protect your assets (particularly your home).
3) It is finite.
The notion that your property may have to be given up after a grueling 5 - 6 years in an IVA is preposterous! Why even bother in the first place? It's just insane! Go bankrupt. You're going to loose everything eventually, why postpone the inevitable?
I'd rather not move again. We downsized and paid off 50% of our debts once already.
Franky no offence taken. Its good to have some banter and bounce off other peoples ideas.
We really tried to re-mortgage but no luck,equity i feel is like figures that are pie in the sky!
Even trying to sell the house would have been tough, buying something else in the same area for the kids to stay at the same schools, travel to work etc sometimes its just not that easy to sell!!
Like harpic the main reason we went the IVA route was to protect the house.
To be honest Franky im not really sure what is the fairest thing to do when so many people have so many different circumstances. But im not too comfortable with the way some of the people have been treated by some of the IVA companys.
Thanku baldy! Banter is a good and healthy thing!! Your honesty is inspiring to us all! Going back to Annie though the interest rates are an insult to somebody who has battled hard to commit to an iva and should be treated like a human being and not a criminal!!
I hope we do not continue to see posts like Annies but I'm not so sure that we won't
Just to put in my personal opinion here. We do not know what Annie's original proposal says, however she must have signed it. Declan has already offered to look into this for her, and I would not expect him to comment on an individuals IVA on here. To me, we none of us have the benefit of hindsight re property values and therefore the moral of this tale, is READ READ READ YOUR PROPOSAL BEFORE SIGNING.
Last edited by nepensioner on Sun Jul 08, 2012 9:23 pm, edited 1 time in total.
Let's just be clear about what folks entering IVAs have agreed to do - and that is exactly what the wording of their own proposals say. If the wording says re-mortgage then this should be abided by and they should not be talked into secured loans which are an entirely different product. If the proposal says refinance, then this can include secured or other lending. Anyone who feels that their IP is not acting strictly in accordance with the terms of their IVA proposals shoudl seek independent professional or legal advice. At the end of the day any secured lending affects your disposable income and perhaps ultimately your homes.
Competitive forces inhibit price! If you are asked to secure re-finance, you can go to two or three or more lenders or a whole of market broker and find the best deal.
