Feel absolutely gutted, offer refused

[SueB]

Feel absolutely gutted, had my offer of full & final settlement to clear iva refused even though the offer was to pay the amount that I would pay over the final 22 months.

Because of the equity in my property my creditors do not feel that I am offering as much as I could have done.
My property was excluded from the IVA with an extra year added to compensate so i didnt think this was going to be relevant.

I wasnt adding to the mortgage but by fixing our mortgage for 5 years was receiving a cash back of £6500 which was the offer of the F & F.

To make matters worse I had told the new BS that we were moving to NOT to go ahead with the mortgage until my creditors meeting of today but they went ahead and completed last week.

I did actually write to the B Society saying should I wait for the meeting and they wrote back asking for the paperwork to be returned.

When they wrote asking again for the paperwork I phoned and said that my meeting was 12th Sept but they said send it anyway so everything is ready.


The mortgage deal is a good deal and fixed at a decent rate but this now leaves me in a right mess as I was hoping that this was not going to matter had everything gone to plan today.


I am waiting now for my IP to come back to me because of course I'm not suppose to move mortgage without their permission and now I have this cash back which was supposed to be clearing off the iva.


Sorry if the above is all mixed up but my head is in a right mess today.

One important factor is that the mortgage is mine and my wifes but the IVA is only in my name so of course half the cash back would be my wifes.

I know this may have been naivety on my behalf but it was all in total innocence.

Has anyone got any suggestions what they best thing to do would be or what
the possible outcome will be.

[mikebdomain]

Hi SueB and welcome to the forum

If the BS completed against your instruction the remortgage can be reversed.

FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Mortgage Broker
Specialising in adverse credit.

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
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Please read our Initial Disclosure Document(IDD):
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[Adam Davies]

Hi
Thats a strange one.
You were offering to pay the remaining monthly payments and you have no equity release clause,is that correct ?
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[SueB]

Exactly right Andy

I offered to pay the full amount that would be paid over the last 22 months

2 creditors said that the offer wasnt high enough because of the amount of equity in my property they would expect a higher offer

when the iva started an extra year was added to exclude the property but in the recent f&f offer the value of the house was mentioned which i thought was a bit strange

Anyway its all resolved now, i got a call from IP to say to send the cash back figure to them and they will use that as my monthly payments to the end of the arrangement and cancel my normal monthly payment

So afterall its not too bad even though the f&f was rejected because i will be paying the same out each month but my mortgage will now be on repayment rather than interest only and so will at least be reducing. I had previously tried to keep the monthly payments at the same level when interest rates went up to keep my iva payments the same by changing it to interest only.

My monthly payments will be more or less the same so what would be an increase in the mortgage by changing to repayment is offset with the cash back i will pay to the IP

I was just so frustrated yesterday for innocently getting myself in that mess and annoyed at the BS for twice telling me (although only verbally) that they would be in touch before everything went though.


If i could go back several months with only 22 months to go I simply would not have bothered with the f&f, not worth the stress and anxiety

[mikebdomain]

That's great news Sue at least it worked out OK in the end..

FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Mortgage Broker
Specialising in adverse credit.

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf

[Adam Davies]

Hi
Thats great news,and your IP is doing you a favour there !!!
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[Lisa2009]

Im so glad i rang the solicitor today about my remortgage as they were asking for paperwork to be returned. I had to explain that my ofer has to be agreed by creditors and i would not be needing the remortgage if it wasnt accepted. Lets hope they dont hassle me too much now.
Im really glad you got yours sorted out sue

[iva.com]

Hi Sue,

I'm glad to hear that your IP has managed to sort this out for you. I can understand how frustrated you were.

All the best for the remainder of your IVA.

Kind regards,
Terry Balfour
IVA.com

IVA.com - The IVA Comparison Site
100s of reviews, All IPs and IVA firms rated.

Use our IVA firm comparison tool to find best IVA firm for you:
http://www.iva.com/iva_comparison_1.asp

[catullus]

This just demonstrates how perversely some creditors are voting at the moment, often with any real understanding of the proposal itself.

As a bit of a joke against myself, we sent out a proposal recently which had not been copied properly and only every other page was included. I'm not proud of that!!

Result? 100% vote in favour!

[Adam Davies]

Hi
I did wonder if the fact that the house equity was mentioned in the proposal was the reason for rejection of Sue,s variation,even though the equity plays no part in the IVA.I am surprised that the IP mentioned it in the first place.
I imagine that very senior people in the creditors camp give the nod or not to IVAs...........maybe I,m wrong and looking at Catullus,s story it seems certain.
I wonder if anybody who works in the creditors camp reads this forum and is brave enough to post under a pseudonym[and yes I looked that one up in a dictionary !!]
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

It is not right for creditors to consider the value of the property now, and downright unprofessional.

I could put money on it where those votes came from, but in my usual manner I will pledge the fifth amendment!

Andy - the IP would have mentioned the equity to be professional, and he would have had to explain properly where the money came from. The way banks are voting at the moment, will lead to some IP's being less than free with the truth (yours truly excluded of course!) and result in further malpractice within the profession.

At this rate Catullus and I will be looking for jobs in other industries. It makes me so despondent sometimes!



Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[catullus]

I somehow don't think that we'll be out of a job, just yet, Melanie.I have to say that current news flow on the banking crisis is really worrying and I really do fear that there is more to come.

Although I don't think that I have a reputation on this board for being one of Northern Rock's most ardent admirers I think that the fact that they have had to go to the Bank of England for a bail out is really worrying since this bank, whatever you think of them, is very sound. None of this bodes well for the lending market and you and I spend all day reading clients histories that show that, if it hadn't been for the availabilty of credit to refinance, many people would have hit the buffers so much earlier.

With the liklihood that unsecured lending has hit the skids I fear that the dam is about to break.I have a feeling that we then might then see a 180 degree turn around with Banks begging customers to consider IVA's and DMP's rather than hounding them in to bankruptcy,

In the short term, if you're having problems with certain creditors, take a leaf out of my book.Only copy half of the proposal and it will sail through!!!

[MelanieGiles]

You are of course absolutely correct - and I have been around a long time in this industry - some would say far too long! but I don't remember such raging paranoia about the banking industry for some time - and the very fact that mortgage lenders are going into administration is quite horrid.

Personally I also find it refreshing that financial journalists are giving us a rest for a change!

I like the idea of the loose-leaf IVA proposal! Did you go cold when you found out what had happened, or have a good giggle!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[catullus]

I have to admit I giggled, then I thought is this a material irregularity and should I reconvene? Then I thought would this be fair on the debtor, then I saw that NR didn't vote and so finally decided that the creditors knew a quality proposal when they saw one, and have decided to keep shtoom.

God help me if there is a stewards enquiry during the IVA, you know the sort of thing, when you actually have to look back at the proposal to see what it says. I think that I might have a problem!!

I feel a notification is imminent!!

[Skippy]

I like it Catullus!

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/