Hi
I am nearly out of the IVA, just 3 payments left.
I have made every payment and have been excellent in all my correspondence. today I received a letter asking for an up to date redemption statement from our mortgagee and from a secured loan attached to it and valuation of our property from an estate agent.
My question is, after all this time and struggle, is some one going to insist on more money, a re- mortgage or what. I was so looking forward to getting back on track, this is really worrying me !!
Please can you advise ??
This would have been discussed with you at the time of the IVA and meeting of creditors although with only three payments left it is wuite late. Supply the info required as it would have been part of the proposal but if in doubt speak to your IP and ask why this was not explained at the time.
I will phone my IP in the morning, just a shock reading the mail today.
I cant remember discussing my house at the time and I've worked so hard to get myself out of negative equity and in to the positive. Don't want to go backwards again.
I phoned my IP as suggested, the worst news possible I think.
I've was told there is a clause in my arrangement. anything over £5k of equity can be claimed by my creditors, in the likely event that I would not get a re-mortgage I will need to take another 12 month's IVA, or make a 3rd party offer to them for approval. 3 month's ago, I had an email from my IP saying my final payment would be the 9th of September and I have been wishing my life away to reach this date and be out of this mess. Now I feel so deflated, I don't think I can handle another 12 months. I'm sure I have at least £30k of equity and was hoping to help my kids out in time with that.
Any advice or experience in this matter would be gratefully received as I really don't understand.
Hi Kev. You have the standard equity release clause which should have been explained at the outset -- and appears to have also been overlooked by your IP.
In reality you have the best solution -- that is to say the 12 month extension. Some IVA'ers with different clauses are being asked to take secured loans, which, in the long run, work out far more expensive.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks Foggy,
I agree that would be the best option.
12 month's would cost me around £4.5k, I really want to get the monkey off my back. They said I could make an offer, I'm thinking of selling my belongings and maybe raise a couple of grand to offer them ?
It looks like you will have to extend, obtain a secured loan or find funds from somewhere to settle. It is a real shame after all this time to be faced with this but it must have been in the proposal or was introduced as a modification. This should have been explained to you clearly at the time so either it was glossed over or you did not understand entirely.
I do know that at the time clients come to us they will agree to anything just to get an IVA and we do try and bear this in mind when we explain the proposal and modifications.
I have taken a days holiday today to go through the original documentation and their is no mention of any thing regarding the house at any later date.
I have noticed the original valuation of my house in the documentation is 20k higher than the valuation from the estate agent. This is due to the estate agents wording, he gave 2 estimates one for free hold and one for lease, we are lease hold.
I have not been informed of any modification that I am aware of.
12 months into my IVA I was made redundant and was out off work for 3 month's, but I paid those 3 month's up and more with the redundancy package I received.
I have asked my IP to send me this clause as it was not attached to the letter I received from them.
I have kept all correspondence through out the five years, I cant find any modifications.
There is a possibility that your property was not included in the IVA and your IP has just sent a standard letter assuming the property needs revalued.
You are certainly right to ask where in the proposal is the property mentioned or if not you need to see what modifications were included in the Chairman's Report.
If the property is excluded then your IVA will cease after 60 months so fingers crossed and let us know what happens.
Even though we have spent 5 years in the IVA, with the help of me being a DIY fanatic, my wife being fantastic at decorating, going without food and stuff, plus ebay, we have turned this house from a home without even heating to a nice home.
Don't want to loose that know!!
I have gone through the original proposal again and in the small print fount this-
"It will be seen that there is no equity in the property and as such I do not propose to introduce any funds from the property. However, I am agreeable to a restriction being registered at the Land Registry in favour of my Supervisor to protect creditors' interests in the event of my default. I do not seek to exclude the property as an asset in the Arrangement"
Is this the clause? I thought this meant only in a default situation ! which we have never been in.
You need to check the Chairman's Report to ensure there was no modifications but based on this your property is excluded due to no equity. Speak to your IP to be sure.
Subject to there being no modifications in the Chairman's Report ( which overrides the proposal in setting the terms of the arrangement ) I agree with Michael. The property's equity appears to have been excluded (on the grounds there was none) and, presumably, no clause was inserted for this to be re-visited at month 54. So there should be no extension.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
