Melanie, I am intrigued by your comment to Rosyalin re this subject....
"The fact that you cannot get a mortgage ought to work to your advantage - thus avoiding you entering into further borrowing merely to complete the IVA."
I have today received that long awaited but un-welcomed letter from my supervisor re the final settlement of the IVA which fall due on the 15th Dec 2009.
The details are that the recent valuations I obtained show the property valued at between £180K and £185k. The Mortgage redemption figure is £156k. Therefore allowing for the cost of selling the property at £4K, my 100% share of the equity is estimated at approx £11k. So he wants to know my proposals as to how I wish to proceed in realising my £11k.
Naturally I immediately thing about re-mortgage but I can imagine that's going to be as likely as hens teeth. But your comment above suddenly struck me as how it can work to my advantage?
Bob
Hi Bob. It would be almost impossible to obtain a remortgage in the current market and even if you did the rates would be penal. Ask your supervisor for a years extension to address the equity and this will mean that you can remain with your current lender and not have to take on a larger mortgage for the remainder of the term. It does mean an extra twelve payments but would certainly benefit you in the long term.
Melanie, You also made this comment about a year ago to another member. I wonder could you explain it further to me, in light of my circumstance as outlined above ........
" and in an IVA you only have to raise finance to 85% loan to value in any case, so you would be allowed to retain 15% of your property's value even if you did have equity, plus if the property is jointly owned, the co-owner's share would remain untouched."
There are many different versions of the equity release provision in older IVAs - my comment about 85% would no doubt have related to the current IVA protocol which has sought to standardise matters.
In your case, it appears that you are required to raise the full amount of your share of the equity - which was pretty unrealistic from day 1 unless your intentions were to sell. How did you and your IP discuss your ability to comply with this modification when it was originally accepted - assuming that this was a creditor modification and not written into your IVA by the person now acting as your Supervisor?
Hi Melanie, Correct, it was a modification by just one of the creditors at the 11th hour. The Supervisor simply accepted the modification and made no effort to negotiate it with the creditor.I have explained previously that My IP has never done anything too assist or advise - he has been rude, arrogant and completely indifferent to all the proceedings. Whenever I have queried with him, any aspect of the terms - he simply says "well you agreed to it". That's his attitude. We have never discussed my ability to realise this sum and of course he knows full well that it is going to be impossible. As far as I can see, the most I can do it to attempt to re-mortgage and if (when) that fails offer a further year extension at the current rate. That would bring into the pot a further £6000. Whether he would be inclined to accept, I have my doubts. About mid term, I questioned him if it might be possible to do a deal as a full and final, if I could raise a lesser sum that was outstanding and his reply was to say that I owe £x and that was the only figure he would accept for a F&F
There was only one person who could have accepted that modification on the day of the creditors meeting and that was you. But your IP has a complete duty of care to ensure that you were advised properly about the reality of that modification which does not appear to have happened.
A variation to the original terms seems now inevitable - and I do think that you will find that creditors are sympathetic, but prepare yourself for the possibility of a further year's contributions.
Are you prepared to state which firm you are with?
Yes you are completely correct about me accepting that variation.To be honest - had I been asked to sign to cut my heart out for the creditors - I would have done so - I had so little understanding of what was happening. I had no idea what the implications were - I had no idea that I could object - I simply and naively looked to the IP for support/guidance and got none. It was a done deal - nothing I could have done about it.
There is no way I can prove that the IP did not discharge his duty correctly but when I queried it later in the colder light of the passage of time - his response was that I signed for it so live with it.
What do you think are the possibilities of obtaining a variation of terms and how do I go about it - by requesting the IP to pursue it? I do understand that offering a further 1 year contributions might be an acceptable compromise but unfortunately my business as a free lance trainer is also suffering from the recession with clients finding savage cuts in their training budgets.
I will disclose the name of the firm dealing with my IVA but as a precaution to protect myself, not until after I have completed. I still need their help!!
That I will do. So what you're saying is that I should instruct him to seek a a variation to dispense with the modification clause saying I need to bring into the IVA my share of the equity> Is that correct?
i agree about doing things that are unknown...and we too have had a un helpful iva experience.its a unknown world.we recently had our house valued and was lower than predicted .we had a clause re final year so we are going for that.I think it would be useful to see some sort of guidelines on here for expenditure and maybe some senarios of experience so .they can be read and learnt from its such an excellent site.may be melaine would help with this.I must say melaine we wish youd been our IP your so good and fair
Thanks for your nice comments Orange! It does not cost anything to be fair and polite, and I find that we have good relationships with our clients and their creditors as a result.
Melanie, I will do that today and promise to keep you updated with progress. I wholly endorse everything Orange has said about you and would re-iterate my own praise and thanks for your endless and unselfish help to all on this forum.
In my line of work - First Aid Training, I know that there are people alive today as a result of the timely intervention of those I have trained. I take a great pride in that. Similarly, there are people who have found the greatest comfort and support in their darkest of hours because of your work and that of your colleagues on here day after day. Thank you.
melaine do you think they might put some of my ideas into action?.Yes its good to here praise so often we only get negative fed back .we are lucky to be in employment such alot arnt !
The site is now fairly well known around the industry, but from a consumer perspective unless you are actually looking for an IVA and type that into Google you may not find it.
Orange - your suggestions are very helpful and I am sure that Admin will be reading the post and considering the points you have raised.
Bob - totalling agree with you about pride in your work. I am a qualified First Aider too - and the work you guys do is brilliant.
