Repossession during IVA

[ukmdb]

Hi all,

If this post goed on a bit I appologise, I just dont know where to start.

I split from my former wife 3 years ago and started an IVA agreement.
the divorce is now complete and I am enjoying my new life.

As psrt of the IVA it was agreed that 13k of equity would be released from the property in the fourth year.
The courts ruled that she could keep the house and also ruled in favour of the IVA that she must release 13K to me for the IVA.

Last month I then found out the house was being Repossesd...
I contacted my IVA supervisor who assured me everything would be ok and do not worry as most people are now in negative equity or in simlular situations.

Phew... All is good again.
The ex moved out the house couple weeks ago and is now renting somewhere else.

Then today
I got a call from the Halifax.
Saying they can not voluntary reposses the house without my authorization.
I stated that the house was handed over to the ex and is nothing to do with me now.
But apparently not. The house is still in both names.
and are both resposible.
[:(!][:(!][:(!][:(!]
She said that if they cant get enough to cover the mortgage and legal costs then we would both be liable for the outstanding amount.
She is on benefits and has never worked in her life. [:(!]

The good thing is that the mortgage is only £50k
The property is valued at £70k (is an ex council house)
The mortgage was taken out on interest only as the original plan was to buy and sell for a quick profit.
The interest only is £153 Month which is less than I pay on my council rent now LOL...
how she or her benefits couldnt pay that is beyond me. the new place she is renting is costing £600 month and is being payed by Social Security.[:(!][:(!]

So that the background.
the problem is..
If I agree to the Halifax taking repossession
How do I stand with my IVA if the halifax dont reclaim enough to cover what they need for the house and they come to me looking for money?

I am thinking if it would be possible for me to rent the property out which will then pay the mortgage and arrears, But then would I be able to do this in an IVA?

What if I gave up my council house which is more rent and took on the house and payed the mortage, But then how would i be able to release any equity?

I am stuck as to what to do for the best and would like any advice you peeps can give.

Thanks

[kallis3]

Hi, I really don't know what to suggest.

You do need to let BE know and they should be able to advise you.

Hopefully one of the professionals will be along to give you some help.

[kallis3]

I've deleted your other thread as it was a duplicate of this one.

[MelanieGiles]

You could either move back into the property, or rent it out - but the latter will need the consent of the mortgage company. As it seems your wife has vacated the property on a voluntary basis, the mortgage company do need your consent as they cannot proceed to see the property from under you. Once three mortgage payments have been missed they could start their own possession proceedings however.

If the house is eventually sold at a shortfall, this claim would form part of your IVA and be bound.

[ukmdb]

Thanks very much for the sound advice Melanie

Can you explain more about what you mean by this claim would form part of your IVA and be bound. !! Sorry I dont understand.

If the house is eventually sold at a shortfall, this claim would form part of your IVA and be bound.

[MelanieGiles]

It means that the claim would be a creditors which would be deemed to be included within your IVA.

[ukmdb]

Thanks again Melanie

I have contacted BE who I have my IVA with,
They said agreed that any shortfall from the repossession would have to be included in the IVA.

They also said I may have to contribute more towards the IVA and that the IVA may also be extended.

I forgot to ask though, How long could the IVA be extended?
Can it only be extended by a year or as much as they want?

Thanks

[David Mond]

Depends what it says in the original proposal in respect of new liabilities established which were not taken into account. In any event no more than 12 months I would submit

[MelanieGiles]

The debt existed at the time of the IVA so it is not a new liability. Although it may have been fully secured against the asset, it is a debt nevertheless which will now crystallise once the property is sold,

[David Mond]

Yes any shortfall would be part of your IVA.