If we sold our house

[clairee]

Hi, we are currently in an IVA and have been for approx 20 months, we are paying reduced payments at the moment as i am on maternity leave. My husband is self employed and needs an operation in the summer and will be off work for 3-4 months. We are always just trying to keep our heads above water and are failing miserably!!!

We are now contemplating selling our house and moving into rented. We do not have the clause in our IVA ref our house we agreed to pay for more months to cover the equity. If we sold our house would we have to pay back the full amount of the debt owed or would they take a lower figure?

[MelanieGiles]

I am sure that there is room to negotiate with your IP Clairee, expectially as you are one third through your IVA. What do you hope to make from the house sale, having made allowance for removal costs and a rental deposit? And how much were the debts in your IVA, your monthly payments and the original dividend pledged?

[notapot]

Hi, thanks for replying. The dividend was 42p in the pound. We owe 165,000 on the mortgage, hopefully sell for 230,000 - with removal and rental costs taken off we would end up with about 55,000 - we orginally owed 43,000 in unsecured debts. So would they expect the whole amount back as my husband will not be working for 3-4 months we need to make sure we have enough money to pay for the rent - we also have 4 children aged 8 - 3 months.

[notapot]

Sorry, couldn't remember my password from before - also the monthly repayments were 527 but have dropped to 250 due to my maternity leave for the last 4 months.
Thanks
Claire

[MelanieGiles]

You should make a detailed list of all of the monies you need to retain from the house sale, some of which are detailed below:-

Agents fees
Solicitors fees
Removal costs
Rental deposit
Husband's lost wages

And then see what you are likely to be left with.
I would have thought that an offer in the region of £20,000 would make a sensible settlement.

[luluj]

Please remember that rental deposit may be up to six months rent in advance - we have moved twice and both different letting agents have said this was what was needed to for us to be able to rent - having a guarantor was unsufficient!