Remortgage in 4th or 5th Year

[frequentflyer]

Having just read through my chairmans report and the modifications, I noticed that mod13 stated that the property be valued etc etc in year 4.....mod20 stated the same thing but after month 54. I rang my iva company who said they were unable to remove the earlier one as the representative for the creditors refused to allow it to be removed even though another creditor went for month 54.
I was told that I would therefore have to go with the earlier date for a possible remortgage.
I have agreed these modifications already after the meeting, but what I thought was duplication was not and it would seem I will have to remortgage earlier than the final year. has anyone come across this situation before?

[Beechy]

Some lenders have now introduced the 54 month mod.

Before this mod was introduced a valuation was carried out with a view to paying the equity in to the IVA after a min of 48 months payments had been made, now creditors are looking to get this up to a min of 54 payments.

This helps increse the divedend by 6 months extra payments

Dave Beech

[frequentflyer]

Beechy, are you saying that the 48 month mod is better for the debtor than the 54 month mod ? Cos Im having to go with the earlier 48 month one......

[Beechy]

Just re reading the post and with there being a duplication, it looks like you need to speak to the IP, as this is a voting issue and you may not have a choice of the payment period.

Dave Beech

[frequentflyer]

Yeah, I have spoken already and they say that as this was a mod put forward by one of the creditors they cannot take it off in preference to the year 5 option as the creditor or their representative refuse to have it removed for some reason...even though there is the option for a remortgage in year 5...Im totally confused about it.....

[Beechy]

Is the IVA with DFD

Dave Beech

[Sensible77]

As I understand it the 4th year means month 37 onwards i.e. the start of the 4th year for the equity release.

[MelanieGiles]

This further outlines the burden of conflicting modifications which we continually have to bear as IPs. When I am faced with this scenario, I always err on the harshest modification, but there is a dilemma in this case in working out which one of these is the harshest - 4th year or 54 months. Who knows! Your IP really should have put more effort into sorting this out on the day of the creditors meeting to be frank, and I suggest you leave this firmly in his court to deal with. I suspect that you will be re-mortgaging during the fourth year, but at least this might mean that the IVA ends a little earlier for you.

The sooner the protocol operated by the creditors' representatives is made standard the better.

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

[Beechy]

I have heard that some of the companies that are listing all the mods using their discretion when the IVA reaches the conflict due date.

Dont know the validity of this (thoughts and views greatfully recieved)

Dave Beech

[MelanieGiles]

By that stage all of the debts will have been sold to Max, who probably won't care!!

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

[Beechy]

Surely Chuck and his chaps at Max will see at some point he is missing out on 6 payments

Dave Beech

[MelanieGiles]

I'm sure that there is a commercial argument in there to suit all circumstances, but the uncertainty is worrying for the debtor and conflicting mods on this sort of thing must get sorted out soon. It is simply point scoring for one representative not to back down on the others mod, and more importantly this sort of nonsense adds absolutely no value at the end of the day!

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

[Beechy]

Is it not a case of each lender having their own problems which means they cannot agree on the best way forward (collectivly), and all this is doing is causing further problems to debtors who seem to be trying to sort their future out in a stuctured and effective way.

Whats happened to DRF

Dave Beech

[MelanieGiles]

I never had too much to do with DRF and was never sure they were really taken too seriously amongst the banks. I don't know if the problem is actually creditor driven or representative driven - probably a mixture of both!

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

[Beechy]

Wonder if Andy has any I dea re DRF?

Andy?

Dave Beech