In year 4 of my iva I have a equity clause of 85% of my half of the mortgage, what happens if I cannot re mortgage? It states a further year can be arranged, but would they amend the amount owing?
If you cannot remortgage, then your IVA will continue for a further twelve months and then it will be completed.
There will be no adjustment of what you owe as far as I am aware - we have nothing in ours about that.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
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Why should your IVA continue for a further 12 months just because you can't raise a remortgage in the current economic climate.
It's not our fault that the economy is in free fall, it's mainly down to the banks incompetence that we are in this position so if the housing market has crashed it's down to them, why should 12 extra payments be added just because equity can't be raised.
Let's face it if the economy was healthy and house prices were going through the roof we would be obliged to remortgage to the full amount available, if there is zero equity that should be it, 60 months and finish the IVA, if you are not a home owner you do a 60 month IVA and that's it, why should home owners be treated differently.
I don't mind paying back as much as is practicable, that's why I opted for an IVA instead of bankruptcy, if I'd gone bankrupt I would be discharged by now and been able to purchase the equity in my house, instead I did what I considered to be the honourable thing which was an IVA which means my creditors get the best possible return possible.
Having said that I don't agree with the terms and conditions being changed because we are in a recession, if equity can't be raised that should be it.
IVA COMPLETED ON THE 17th MARCH, FINAL I&E COMPLETED 26th APRIL, COMPLETION CERTIFICATE ARRIVED 2nd AUGUST
To address the equity that you have in your property which would be available to creditors as an automatic right under bankruptcy proceedings. Most of my clients say that they would rather pay for an extra year, than have a higher mortgage stetching into the future.
If you had been made bankrupt, you would not have been able to purchase your interest - this could only be done by a third party or your partner, unless the equity was zero, in which case the need to raise money during the final year has to be remote in any case.
I know a 3rd party has to purchase my interest in the property I researched this quite thoroughly at the time, in my case my daughter was willing to do this which at the time would have cost her £2,500, even so I still opted for the IVA option as a more honourable solution.
I would also rather pay an extra 12 payments rather than remortgage but I wasn't given that choice, my variation was a 4th year equity release clause, not 4th year equity release or 12 extra payments, so my argument is if there is zero equity available when the 4th year comes around why should 12 extra payments be added automatically [?][?]
IVA COMPLETED ON THE 17th MARCH, FINAL I&E COMPLETED 26th APRIL, COMPLETION CERTIFICATE ARRIVED 2nd AUGUST
If there is no equity, then there is nothing to raise, so you would not have to pay an extra year's contributions, as there would be nothing to contribute to.
The idea is you pay as much to your creditors as possible! So if you have a property then some of that value will be liquidated.
As you are 'half way there' and the housing market has been talked up, you may will be able to remortgage when the time comes,Banks have been told to LEND LEND and LEND and that includes remorgaging.
I share your angst but the view here that I am hearing is debtors pay as much to creditors as possible.Whether that is in the form of 4th Eq release, Lotto win and inheritance etc all goes to creditors!
Last edited by timeforchange on Mon Sep 07, 2009 10:33 am, edited 1 time in total.
