Thought it was the end

[fedup and broke]

Hi all, I thought I was at the end of my iva. 5 long years my final payment was due this month. Yesterday I received a call from my iva company advising me I need to request a 12 month variation due to shortfall on my house handed back to building society over 12 months ago. Can they do this? The shortfall is for £75000 and the Halifax haven't chased for this shortfall. It was such a disappointment to receive this call 1 week before my final payment. Any advice would be greatly appreciated. The house was jointly owned by me and an ex partner

[kazzafunk]

Hi - sorry to hear this. I am not sure of the answer to this but hopefully someone will be able to give you some advice later today.

[lem]

Unfortunately they can, the Halifax have up to 12 years to chase you for the shortfall, as does any lender following a repossession, they usually leave you alone for a couple of years following a repo to give you time to get back on your feet anyway.

Is the £75k just your share of the shortfall or is that the total? Was your ex in the iva with you?

[fedup and broke]

Hi thanks. It's over 12 months. That is the total. No iva was just me. Ex no lives in France and ignores are letters asking for money.

[fedup and broke]

My concern is they are asking me to request 12 months extension rather than other way around.

[luluj]

I really think this is best discussed with your IP or another professional as we do not know the full implications and I would hate to offer you incorrect advice.
From what I understand of your predicament, an additional 12 months of payments instead of a £75k shortfall appears to be a much better option if after the extra 12 months the Halifax then stop chasing for further shortfall - but as I say above - best dealt with by professionals.

[Foggy]

fedupand broke -- this is because it is your IVA and you (at least the firm) have become aware of the problem, so it is better that you propose a solution. The alternative is to wait until the creditors kick up stink and then you would no longer be in control of the situation.

[fedup and broke]

Thanks foggy. I have however been chasing this problem since the keys were handed back jan 2012. It isn't something I have ignored as I wanted it resolved. I guess another 12 months is not so bad. Just disappointing when I only had just over a week left and was planning to move etc. all now has to be put on hold. Thanks everyone.

[lem]

I would imagine though that lenders will take time following a repossession before final details are calculated, solicitors and legal fees have to be taken into account and all this takes time to be fully completed so chasing as soon as you've handed back the keys for answers isn't going to get you the answers you need unfortunately.

But now it seems the shortfall has finally been calculated so has to be dealt with, a further years payments in lieu of this is surely a good solution? If not, what else do you propose?

[Tina Shortland]

Hi Fedupandbroke - I know it is a disappointing to potentially have a further 12 months when you thought you were so close but at least it is only that. I always advise clients who have properties at the beginning to keep in mind their IVA could end up being 6 years and anything less is a bonus, better that way than, like you, your eye is set on 5 years and they you have a disappointing shock.

Unfortunately it is a necessary step, feels a bit like a snakes and ladders game, I guess but then you'll know you only have 12 more squares to go. We'll be right there for you for that bit longer!

[fedup and broke]

Thanks. I'm happy to pay the 12 extra months just was concerned that it was so close to my completion. I hope that this will come off my credit file as satisfied