Running out of time

[beckym]

It was agreed 6 months ago, after a meeting with our creditors that we could sell our property to clear our IVA. A settlement figure was agreed and all going ok....However after starting with a not so good estate agents and the christmas period we are still to get an offer on our property.
We have not actually heard from the IVA company, but what will happen now??
Officially our 6 months is up 5th April

[MelanieGiles]

Everyone knows that the housing market is very flat at the moment, so I am sure that your IP will allow an extension of time if the property has not sold by April 5th. You do need to check this with them directly, however.

[beckym]

Apparently the IP did mention that another meeting will be required with the creditors...they are not likely to change their minds with regards to a full and final are they?

[jpj]

Property prices have dropped over the last 6 months,and in many areas only the very realistically priced properties are moving. I would get a valuation off your agent as to what price he really thinks he could get for your house to shift it in the next few months,then check if there is still the equity left in the house that you thought there was.
I should think creditors will be wary of house values at present.Giving them proof that your house can still release enough equity could help your case.

[Adam Davies]

Hi
This property slump combined with the banks withdrawing from the sub prime market and/or insisting on low loan to value mortgages is a little worrying for those of us in fixed rate deals.My own ends next March,but if things don't improve then I will be on the standard variable rate until things do.For people that have fixed rates ending within the IVA term then the creditors must be flexible,the alternative would be many failed IVAs due to affordability issues.The only plus side for people coming to the end of the IVA with equity releases is that they may not be able to remortgage,and their IVA will conclude without any equity injection
Regards

[jpj]

Presumably if you organise a full and final,and then find out that your house wont sell,and that you cant offer the full and final, does your IVA just start up again from where it left off ?
Obviously you stop paying monthly when your full and final is agreed. if you stopped in month 25 would you then commence again and pay month 26 even though you had endured a set time without monthly payments?

[MelanieGiles]

So long as you have demonstrated best efforts to sell the property, the IVA should just continue until as sale can be effected, but your IP may well need to liaise with the estate agent handling the sale to see if it is being realistically priced. A reduction in price may be needed to generate interest in the property.

[AlanO]

As Melanie suggests provided you can show best efforts and you are in contact with your IP no reason to believe that any negative action will be taken.

Suggest you talk with your IP and offer to provide consent for the Estate Agents to communicate direct with IP

All the best alan

www.debtdr.co.uk

[beckym]

Our situation was slightly out of the norm. I fell pregnant just after taking the IVA and it was agreed just after 5 months of starting that we could have a full and final as space is a real issue. We will be going into rented. I think with reards to a realistic price, that this is where we went wrong the first 3 months and believe it to be ok now and comparable to other properties alike. We definately have enough equity to come out of it completely debt free, clearing mtg, secured loan, IVA, family members and leaving us with enough to move and put down a deposit...Now that the baby is here we are desperate for the sale as I am sure our IP is too!!

[jpj]

Well good luck Beckym. At least your just entering the best time of year to sell,keep on top of those agents though...if you dont shout you dont get!! )