IVA company demand house price reduction. Do they have a right to do this ?

[Rhiannon.07]

My mum has just finished her Iva term and had to sell the house as was told because of the equity that would be the best option and also she had no income at the time, the house however failed to sell and had no interest. She received a letter yesterday from the Iva company demanding that she reduce the cost of the house by at least £15000. My question is seen as the Iva had completed its term does the company have a right to do this as letter was sent after end date?

[Adam Davies]

Hi and welcome

You need to look at the terms and conditions of her original chairmans report following her creditors meeting to see what it has to say about equity release.
The whole idea of an IVA is to protect your house, what is the point of paying for five years to then have to sell your house ?
What company is she with ?

Regards

[Rhiannon.07]

She hasn't been paying anything off, the agreement was to sell the house to pay them off as she had to close the family business due to her brothers illness and at the time has no other income, since then she has got another job and informed them about it but they have not suggested making any payments, she has also had some ppi claims which the banks said they would deduct from the total but the company have not sai anything about it. I need to have a look at the report but I can't understand why she can say about reducing the cost of the house when the end date for the agreement was last week?! I thought that because it has come to an end then that was that, sort of a gamble on their part if the house didn't sell and the agreement ended?
Another thing on the breakdown of costs owing to companies which was sorted at the beginning it is almost 3 times the amount which is owing that she has agreed to? I thought that they couldn't charge interest?

[luluj]

Your mums proposal docs will explain what happens if the monies cannot be realised in the given timescale .. Have a read of them and with your mums permission speak with the IP to fully understand the position you are now in.