F&F using my equity

[spenmotherhen]

Hi Guys

We are in our 3rd year and desperately would like to end our IVA.

At present I feel we are in a position to release some equity that may be accepted as a F&F.

Who would we approach for the information on this other than our IP (as they are never available and has changed several times during our arrangement).

Do we have to arrange this through our IVA comany or could we approach one of the specialists on here?

Thaks in advance for any help/info x

[kallis3]

Hi,

It would have to be arranged via your IVA company.

[MelanieGiles]

Is the equity in your property included in the IVA in any case? Best to check your proposal, and which firm are you actually with?

[spenmotherhen]

Hi Melanie yes it has the 4th year clause and we are with Kingsgate.

[MelanieGiles]

Then I think that you will need to have a good reason to settle the IVA early using equity which creditors will already feel they have a call over. The fact that you are now living overseas on a different budget may help, but given that you are now living in HMF quarters, you may be expected to offer the whole amount of the equity in your property which can probably only be released by a sale. Are you prepared to consider this?

[spenmotherhen]

HI Melanie this has been a strange thing from the start of our IVA as we actually do not live in our property. It is only a two bed and was orginally bought as an investment when we were both working full time and before we got into finacial difficulties.
As there was not enough equity to release when we first started our IVA, we have carried on renting it out.
However it has not been plain sailing and have had the worst tenants over the past 3 years.
There has been times when we have had to sell household items to cover the mortgage when the tenants have not paid thier rent to prevent any arrears with our mortgage.
We did try to sell and end last year but the buyers pulled out 4 days before exchange and we lost 17k in one week due to the fall in house prices.
We would like to sell but are now not in a position to do so as we would possibly not cover our fees mortgage etc.
We would release everthing if we could end the IVA, we will never move into the house as we are a family of 6 and have no sentimental ties to the house at all.
As the house fell through and we lost so much money on the house we also had to pay £360 to take the house off the market which was the cost of the HIP. Fortunately we had to pay this from our moving allowance otherwise we would have been stuck as we don't have money like that hanging around.
It's one hell of a ride this IVA but I can truthfully say I have enjoyed the challenge and we spend money so much more wisely. x

[Debtwitch]

Hi there

If there's no equity to release from the property, can I ask where you're thinking of obtaining the funds to offer a F&F? If they are funds you are already in receipt of, they are likely to be captured by the terms of the proposal in any event.

[MelanieGiles]

Was the house included at all in the IVA? As an investment property, I am suprised that creditors did not demand to see it sold at the time you entered into your IVA.

[spenmotherhen]

I think it did not get sold just because there was no equity at all in the property, would of gladly of sold it at the time it's been a real financial burden.

[MelanieGiles]

Is it costing you more to keep than you are getting in rental income? If so, you could allow it to be repossessed and any shortfall would be a claim bound by the IVA.