Goosed, many of the proposals finishing around now were written before the latest few incarnations of the Protocols and have wildly varying equity terms.
To be fair, many of the clauses were designed to limit the debtors liability in a rising market. However the last price crash put the mockers on that! Some people were finding that they had to produce equity that simply was no longer there!
Now, enlightened IP's were dealing with these sorts of situations by proposing variations to bring the older terms into line with the modern protocols (some weren't, but there will always be a maverick in any line of work).
However, and here comes my gripe again, I have noticed a trend where we are no longer seeing mention of such variations on the forum (to be expected as many of these old proposals are finished), BUT, we are seeing more people being suddenly faced with onerous conditions relating to equity release. More than once in recent times have we seen a debtor saying something like, " we were told we would probably have to extend, and now they want a lump sum".
This is either down to glib advice from the IP's team (we rarely get ANY advice from our IPs) or to a hardening of the IPs attitude in maximising realisations.
As I say, this is only a feeling in my water -- no hard evidence.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
What worries me is how many finance companies may soon latch onto this as a 'business opportunity', mortgage funding as we all know is now hard to come by for those even with a good credit history, just like PPI claims firms that have sprung up, how soon is it going to be that we are going to see many companies offering secured loans at superhigh 'variable' interest rates for those in IVA's to address the remortgage problem in year 5? I worry that this is going to make IVA's totally unattractive as a fair debt solution for people in the next few years if this is the case. I know I certainly wouldn't have been prepared to take on an IVA if it was apparent that I would then have to take on a high interest loan for a large amount that I would then be committed to paying for an eternity, I would just choose bankruptcy instead.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by TheArtist
Welcome Andy, it would be interesting to know your administrators. I'm not entirely sure they can endorse, let alone provide details, another avenue of debt. Whether it concludes your IVA or not. Tread carefully and proceed with caution. It just doesn't seem right to me.
Completed IVA - August 2012 pheeeeeeeeeew
Only my opinion - Nothing More Nothing Less
However, each individual customer is going to have to check their IVA wording VERY carefully.
Even protocol-compliant IVAs will probably contain the following wording:
'where the debtor is unable to obtain a remortgage, the supervisor will have the discretion to consider accepting one of the following alternative proposals:
• a third party sum equivalent to 85% of the value of the debtor’s
interest in the property; or
• 12 additional monthly contributions (with the aggregate sum paid to
the supervisor being limited to 85% of the value of the debtor’s interest
in the property).' (Quoted form the 2010 protocol).
...I'm guessing that a 'third party sum' could well be in the form of a secured loan from a sub-prime lender (ie: not necessarily a re-mortgage or mortgage extension).
I fear this is the thin end of the wedge, that more of us are going to face as we approach Month 54.
What do the experts think?
My opinions are just that: Based on my experience and being a self-employed IVA customer.
hmmm I am going to check mine tonight, I think the worry here is this word again "discretion", I think some would do and others would say, you have done all you can and the non loan or extention option is the better option for all.
Took The plunge and made the call, changed our family life and we have never been happier. Debt free and wont go back..... IVA was by far the best thing we ever did to teach us the real value of Family and money
I have a protocol compliant IVA and it also mentions the 3rd party sum. I queried this and was told at the time "Possibly coming from a friend or relative".
How can this happen??
Surely an iva is a way of controlling your money worries & getting the most back to the creditors within a 5/6 yr time scale.
I intend to pay all I can while keeping my home secure.
I understand that I may have to try & remortgage (even though probably near impossible)
The thought of a huge secured loan scares the life outta me.
On a brighter side, maybe all IP'S don't force this route
Chasing ppi was never mentioned either so just because it doesnt specifically state secured loan doesnt mean some firms wont push for this. No doubt earning commission and referral fees.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
