DFD say I have to offer a secured loan or face the risk of defaulting.

[Goosed]

One of the great things about this forum is that everyone of us can have a good old rant and express our opinions and thoughts on issues such as this.

It`s also a good thing that we have IP`s like Michael and Melanie who are willing and able to give their views and professional opinions and advice - free of charge in their own time, whether we agree with them or not, and this at least gives us an idea of what may or may not happen to us all in IVA`s.

This one, I suspect, is going to be a major, major issue in the coming years.

[UpToMyNeckInIt]

Please accept my apologies.

For the record, I have no objection to IP's getting a fair percentage fee for additional realisations, and I meant no offence using the 'creaming off' term. That's what's in a lot of our IVAs, so fair enough.

I stress that my opinions are just that. I mean no offence etc. and I really appreciate the fact that so many professional people within the IVA industry give their time freely to advise everyone on this forum.

But let's not be naive: Ultimately, we all work for 'financial gain' (or to be rewarded if we prefer to word it like that), and IP's are no different to the rest of us. (Nothing wrong with that either I hasten to add).

Sadly however, there are a small minority of people in ANY profession who are unscrupulous. Again, why should IVA providers be any different? There several well-documented accounts of bad practices associated with some IVA companies - excessive up-front fee charging, cold-calling, and alleged mis-selling for example.

So I'm sorry if I sound cynical, but it is not beyond the realms of probability, that some IVA firms (a minority I'm sure), will attempt to force a secured loan on an IVA customer (who otherwise meets the 85% LTV equity criteria AND who has been UNABLE to get a remortgage). Contract terms should then apply: 12 Month extension for most of us instead.

If on the other hand I'm one of those customers who HAS been offered a sub-prime remortgage in Month 54, but my IP suggests a secured loan which (as Michael's points suggest), will work out cheaper for me, well that's fine. I would not object to this, in fact I would be happy that my IP was able to release the same amount of dividend for the creditors, whilst saving me money.

None of us know what the exact Ts & Cs are in the OP’s (pre-2010 protocol) IVA are of course. I understand that some of these older IVAs ‘require’ equity release – even if it means you have to sell your house near enough.

[Michael Peoples]

This has been a very good thread and I hope people see that not all IPs are in for a quick buck but even so IPs must act as honest brkers and try and arrange a fair settlement by way of an IVA. DMPs do not offer legal protection and I have seen interest added at the end just when a client thought they were debt free.

There will be issues in the future as and when new mortgage products become available and I just want people to see their options.

[baldy]

Im not implying people who rent their houses have it easy. We are talking about the last years of peoples IVA's.

Everybody has advantages and disadvantages to what they decide to do in their housing needs.

Im not gonna go on about this and that, repairs, grass cutting, going into care etc because we can go round in circles for hours if we want to.

What IS important in my eyes for all of us in IVA's is that we get what we have ALL signed up for. And that IVA companys dont start trying to pull a fast one by bringing their own rules into it at the last stage.

Yeah maybe in the future IVA's will be worded in another way but until then companys need to stick to the rules, like we have to.

For anybody looking to sign up for a IVA should do their home work and see for themselves what issues might pop up before they sign up.

Baldy

[Foggy]

Spot on Baldy

[Goosed]

Pretty much what I`ve been banging on about baldy.

IVA`s should be as advised and agreed, what`s wrong with people expecting that to be the case?

[Niobe]

Problem is that most people will just grab at the first lifeline thrown to them without doing any research.

This forum is brilliant but even though there are thousands of people on here, there are many more thousands who haven't a clue unfortunately.

There will always be some who sign up just to get rid of the calls and hopefully be debt free in five/six years without looking at the implications.

[Foggy]

This is, sadly, true Niobe. All we can hope is that people discover forums such as this before they commit to the first firm they approach, or are approached by.

[plasticdaft]

For every person who finds the forum there are several others fumbling around in the dark not having s clue where to turn.

Paul

[Foggy]

True again, Paul. Luckily we rank high on Google, so hopefully people will find us.

[Niobe]

We are, sadly, in the minority even though this is a highly rated site. Not everyone will even think to go online. I only did it because I wanted to know about Mercers. If I hadn't needed that information then I doubt I would be here now.

[Foggy]

Then we have a lot to thank Mercers for

[lem]

I think a lot of people do find the forum but are put off by the commercial sponsorship and don't see it as an unbiased site, it is after all an iva forum so is going to be fairly pro iva. I have seen these comments first hand elsewhere on other forums.

[Niobe]

Thanks Foggy!

I don't think it is unbiased lem - people are always pointed towards iva.com as the advice is free and it is up to them who they choose and which solution they choose.

[country girl]

I am concerned about this equity release as it is something to deal with this year.

As I mentioned before although you may have equity in your home it is just that your home.

If we had to take on a secured loan which would extend well past our retirement we would have to sell up and I doubt we would be able to afford anything else. In that case we might as well have done that in the first place. I certainly do not think this was explained to me in that way when I started my IVA. Whwn I asked about the equity release clause I was told no to worry as my IVA would probably just be extended to another 12 months.

If this does start to happen you begin to feel that IVAS are only suitable for people who do not own a property. The problem is when your first take out an IVA you are so desparate to get something sorted out that you do not consider the equity release clause as much as you should.