equity

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abbiesmum2003

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Post by abbiesmum2003 » Mon Jun 13, 2016 10:52 am
Morning everyone
I have a question about equity. Im sure its been asked before so apologises.
I understand the whole equity clause and if less than 5k iva ends and if over the threshold you pay additional year payments or remortgage if able. I do not have the secured loan in my terms and would argue that if it arose.
So my question is if we have more than 5k (or 10k as interlocking) and cant release, 12 months payments is gonna be significantly less than potential equity. Do creditors simple accept that or try for more even though those are thecterms?? Id love to do a F&F so looking at figures and i suspect we will have equity so adding additional payments onto our outstanding payments but i just wondered if we'd be made to pay more given potential equity.
 
 

kallis3

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Post by kallis3 » Mon Jun 13, 2016 10:55 am
Hi,

They shouldn't do - the extra 12 months will just carry on - we had loads of equity but carried on for the further twelve months.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
 
 

abbiesmum2003

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Post by abbiesmum2003 » Mon Jun 13, 2016 11:02 am
thanks kallis. it just seems too good to be true that 12 months payments in lieu of equity would be acceptable. 12 months of our payment isnt even £4k but equity could be worth ££££.
I was looking at the value of our remaining payments then value of additional 12 payments to make offer more appealable given equity....although not had valuation or anything but just guestimate from local house prices and mortgage amount.
Not approached any family about it yet though! Just me throwing figures around!!!!!
 
 

kallis3

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Post by kallis3 » Mon Jun 13, 2016 11:06 am
We had a lot of equity in our house and were allowed to do the extra 12 months. I was able to do a full and final but hubby carried on for the extra 12 months.

When it comes to it - get a local estate agent out (we told a few fibs and said we had to move) and do not accept an online valuation.

If you can get a family member to help then that would be great.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
 
 

Foggy

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Post by Foggy » Mon Jun 13, 2016 11:26 am
Yeah, the creditors take the hit and you just pay the 12 months worth of payments.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
 
 

Lisa Thomas

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Post by Lisa Thomas » Mon Jun 13, 2016 11:47 am
Creditors don't have a choice now as they agreed this as part of the proposals originally - the extension is to make up for the fact that they can't get their hands on your equity.

They cannot vary the proposals years down the line - they are bound by the terms like you.

As long as you don't breach the IVA terms and keep up with the necessary payments you should pay the year and then get to keep your house.
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk
 
 

lifenoteasy

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Post by lifenoteasy » Mon Jun 13, 2016 11:52 am
The thing you need to look out for is if a secured loan is proposed.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
 
 

abbiesmum2003

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Post by abbiesmum2003 » Mon Jun 13, 2016 12:16 pm
i would argue the secured loan route if it cropped up LNE. I have emails from Mel and examples in our original report fully explaining remortage or additional payments. Our terms do not mention a SL so would fight that one if it cropped up.
 
 

kallis3

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Post by kallis3 » Mon Jun 13, 2016 1:38 pm
You should be fine with that - you have your terms and conditions so tell them that you won't be doing a secured loan if it is suggested.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
 
 

lifenoteasy

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Post by lifenoteasy » Mon Jun 13, 2016 2:27 pm
I'm only punting it out given the experience of others and the approach by their ip.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
 
 

Goosed

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Post by Goosed » Mon Jun 13, 2016 2:50 pm
Hi abbiesmum2003,

If you are still with Melanie`s company then there won`t be any issues, when it comes to equity release time they will just ask you to get written confirmation from lenders that you are unable to remortgage and your twelve month extension will automatically kick in.

So if you are working on figures for a F&F you might want to consider the value of twelve extra payments in that figure.

As has been posted above, a few other companies have been trying it on over the last couple of years or so in attempting to impose secured loans in lieu of equity onto debtors, but as your IVA is pre 2014 it will not have the secured loan option included so it cannot be imposed.
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abbiesmum2003

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Post by abbiesmum2003 » Mon Jun 13, 2016 5:12 pm
hi goosed...we are with CF from the switchover. They have had a habit of discussing SL but i know my terms and that is not one of them. Im not sure how do-able it is to look at F&F but i keep eye on figures and each payment we make brings the total down so its getting more and more realistic to approach a family
member. We only have 24 payments left, plus the 12 for equity. Light at end of the tunnel!
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