www.iva.co.uk

Seriously thinking about going BR now, phoned my IP who is trying to do something with my IVA but I still don't think I'm going to be able to survive so it looks like BR is the only real option.

This has probably been asked a million times but I'm not too savvy and don't fully understand everything. We have a house, and to be honest, I'd like to keep if we can. We bought it back in mar 05 for £136k, borrowing £131k. On the IVA it stated that we still owed £137.5k (presumably to do with penalties etc). Next door have sold theirs for 145 recently, does this mean that the equity in the house is around 7.5k or is there something else i need to take into account?

Who values the house if we go BR, just the local estate agents? If so how many agents.... I.e. Can we hope to get a low figure and therefore reduce the amount we would have to find to keep our house?

Neither myself or my partner have any family we can ask for help, and to rent somewhere would probably be just as expensive by the time we found deposit, moving costs and someone to have us! (We're not bad people honest!)

I don't understand it all, and I need to before it happens. CAB, well you just can't get an appointment, national debt line got all the figures wrong judging by the means form they sent out today, and anyone else wants a pound of flesh for advice!

Was going to try and ring Melanie, but she's not a charity!

Hi,

I am no professional, but I will tell you what I "think" is the answer to your questions.

If the house os jointly owned (?) then the OR will put a value on youre share of the equity in the house, and they will get a valuation done by an estate agent of their choice. if the valuation is out in your opinion, I think you are able to challenge it. Then, your parner will be given the opportunity to buy out your share in the property.

Ask questions on here, but also maybe try Payplan, or myvesta if you want a second opinion. Google will help you find their sites.

Good luck.

Thanks Andy, although it would be both of us going BR, the house is jointly owned by us both, i know that we just couldn't find 7.5k, if thats what they valued it at.

Surely any estate agent, if they knew they were working for the OR would value it higher as they know they mat get a sale from it?

Or is that not the case?

Also, if we were to try and re mortgage to get a better deal, would any arrangement fees and penalties go on to the existing mortgage and therefore reduce the equity?

Is that worth thinking about? Just trying to think of ways to lower the small amount of equity we have really, whilst still affording the payments.

Hi
Your in a catch 22 because to remortgage in an IVA will need your IPs permission and also a reference to say that your IVA has been run satisfactorily.
You will have to wait for the ORs decision regarding your house and it,s value but I guess that it will be similar to the one that was sold near you so I think that you need to be realistic at this stage.
Is your IVA still possible if your IP can agree a lower figure ?
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

I'm not sure it can Andy, to be honest the IP would have to put a figure forward of about £100 for it to be workable, even then things are going to be tight because the other half's given up work to look after our 5 month old (couldn't realistically afford for her to go back!)

IP is trying to get us on a fixed rate mortgage at the mo, presumably there'll be costs involved with that to add on, therefore reducing the value of the equity?

I'm thinking that if that happens, then that would be the best time to go BR as it means we have to find less to keep the house, and maybe they will factor in there cost of selling and moving too?

I just want to avoid losing the house if at all possible, all I want is somewhere secure for my daughter to call home.

Hi there
From what I was told by my OR when I was made BR the usual form is, is that they contact your mortgage lender to gauge what your mortgage stands at etc. They then either do a valuation where you get someone inside the house i.e. a local estate agent who has good working knowledge of the area and comparable properties, or they do a 'drive by' valuation from a firm of surveyors that they employ. You can pay for a valuation yourself and get a private estate agents to do it, stating that you are looking at a 'forced' sale which brings the price down a bit because you need to sell quick in other words. But these do tend to cost. They do not, as I was told, tend to accept internet valuations ie right move etc as these are not always accurate. I was told that I could get an estate agent to value my house (if you wanted to avoid charges you could say you were looking to move and you needed it valued) but then you run the risk of getting a greedy estate agent who is looking at placing it higher than its value to make a quick buck. I would if I were you, contact the insolvency service and see whether their helpline can you give you some advice. I hope that helps - have just been through it so completely understand your panic!
One thing that does help to understand - is that my OR didn't take in to account my mortgage redemption penalty and said that they rarely do this - i.e. the penality that you have when you change your mortgage within a set timeframe whereas my IVA did. Just in case you were wondering.

Hi Fudge

Again differing info by OR region, I am led to believe that mine will take my redemption figure into account, but I will have to wait and see as 6 weeks down the line and still nothing in writing the OR on the BI.
It seems there is never a straight answer even in BR,
Pippa

Righto, Thanks everyone.

We've made the decision now that BR is the best option, and b***** it if they do take the house!

Anyone know where I can download the forms and print them out to fill in , don't really wanna get confused by doing it online, and we might not have the money for a few months anyway ( got 2 x £485 to find! )

I would like to fill the forms in, then have them checked by CAB.

Anyone got the links?

TIA

NorthernMonkey the link is:

https://www.insolvencydirect.gov.uk/isolv

FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Mortgage Broker
Specialising in adverse credit.

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf

Good luck Northern Monkey.

BTW I filled the forms out online and it's dead easy - there are guides for each section and you can save them as you go along. I took about 6 weeks to complete mine! They stay on the system for 6 months so there is no rush to complete them.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

That's good to know skippy, i thought it had to be done there and then.

Gonna ring my IP and let him know what we're up to and fingers crossed.

I'd like to thank everyone for their help so far, I'm sure I'll have some more questions, and hopefully the experience won't be too scary!

Good luck with it northernmonkey and please keep us posted on the process and how you get on.

FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Mortgage Broker
Specialising in adverse credit.

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf

Hi
Good luck and keep posting
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

Good luck Northernmonkey ... sometimes its a blessed relief to make such decisions isn't it.

I was watching "A Place in the Sun" a few days ago ... the couple there were looking for a property to buy in France ... having gone bankrupt four years ago and obviously having got themselves back on their feet again. When you look at other people's experiences and how they have come through it isn't always that scary is it ... and can, by the looks of things, be life changing for the better.

Stay in touch.

Debbie



www.babynamings.co.uk

www.soulgrowth.co.uk