My iva reaches month 60 in June 2016. Unfortunately my mum is in the position where she needs on going care and assistance in her own home. I am considering selling my house to move in with her...I have equity in the property, and realise I still owe the full amount to my iva, which will be covered by the equity. I'm aware there is a hold on the sale of my house but wonder if this would be lifted if the iva were to be paid off on completion of the sale?
You would need to seek permission to sell from your IP. I see no reason for them to say no as it appears the sale of the house will provide an earlier return to your creditors.
Have you thought about renting your property out for the rest of your iva and allowing the rent received to cover the mortgage payment ? Maybe another option ?
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You could consider offering a full and final settlement now and then sell the property when the IVA is over. This would leave something for you to use as a deposit should you wish to buy in the future. The danger is that the IVA would take most or all the equity and leave you very little whereas a full and final would be better for you.
If you cannot raise the funds from a third party you could consider a secured loan and Shaun Vickery from Select has access to these products. Creditors normally accept these type of full and final offers leaving you with something for the future. You could even rent the property out for the duration of the IVA and then sell it but selling it now may not be the best thing for you.
I agree entirely with Michael. It would seem unlikely to be in your best interests to sell the property as you will almost certainly be required to settle the IVA in full (ie. the entire debt including fees and, as I understand, potentially statutory interest). If you are able to settle the IVA earlier, either through third party funds or alternatively by borrowing against your property, then any remaining equity would be yours to use as you wish.
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