Looks like I will have to sell the home

[Dilbrain]

Hi all , I have posted here a few times and have enjoyed the input/response.
Recently I wrote about having problems finding work in the IT sector due to my credit history.
I found work but now I am facing up to the fact that I probably will not be able to complete the IVA.
I have a house, family home to me and my wife and son, this has some equity.
I have discovered that my new wage is not enough to pay the mortgage, bills, etc and even a reduced IVA.
I have discussed the possibilities with my IPA of selling the house to pay my creditor.
The house is worth about 195k.
Mortgage is 130k roughly
My original debt was 76k
My IVA was for The original amount was:

36 x £552.00 = £19,872
24 x £612.00 = £14,688
Equity = £8,343
TOTAL = £42,903

Amount still owed is:

21 x £612.00 = £12,852
Equity = £8,343
TOTAL = £21,195

Although the actual amount of the unsecured creditors claims are still 69k

The creditor would probably agree to a reduced amount due to my salary being cut in half , the amount of £250 for 21 months plus
a year added on the end was being proposed by my IPA

If I achieve a good price for the house it appears that after the creditors claims and other fees
the most I can walk away with is 3k.
Apparently the fact that I have already paid over 21k stands for nothing.

It is a crying shame that I can't raise that amount( 250 pcm ) , especially as my only assett will be taken.
I realise it was mostly my own fault for sinking into debt but it is a heartbreaker.
Apparently the creditor would also consider a lump sum proposal.
With the IVA no one will lend me a bean.
Has anyone got any silver lining stories for me please?

[orange]

sorry to here of your situation dont know any anwsers could you extend your agreement and include some equity the house ? im sure an expert will be along soon

[Shining]

Hi Dilbrain, no silver lining stories from myself but do know a professional poster will be along very soon I'm sure to offer some good advice. Hang in there x

[Dilbrain]

Thanks
I guess I underestimated my expenditure against my income , and it became apparent last week that after paying all bill s and the (reduced) monthly IVA , I have nothing left. We were relying on my wife's income for food and petrol.
She had her hours slashed to virtually none recently. I am also worried about finding a place to rent , we have a dog, and also the IVA associated to me will cause problems.
Even though it will be satisfied, we will have to find accomodation before the creditors receive their cut.
I wonder if the housing association might help , considering the circumstances?
Also, if I am to get a max 3 k , no matter what the sale price, I may as well sell it for a massively reduced price anyway..

[Dilbrain]

No more advice ?
[:(]

[Adam Davies]

Hi
Are you on a repayment or interest only mortgage ?
Regards

[Dilbrain]

I have switched to interest only with my main mortgage company ( Santander).
My second mortgage (SPPL ) will not allow an interest only adjustment. I looked into the HMS (Homeowners Mortgage Support) scheme but neither company are a part of that.

[Adam Davies]

Hi
Can you talk with the secured loan company to see if you can extend the term and reduce the monthly payments. It seems so unfair to have to sell your house after paying in for nearly two years.
Have you considered a low monthly debt management plan until things pick up for you ?
Regards

[MelanieGiles]

It is just you in the IVA or is your wife in one as well?

[Dilbrain]

It is just myself in the IVA, I have actually paid in for 39 months. Just had the last 4 months deferred.
If I change to a DMP I guess the IVA will fail and the last 3 plus years will be to no avail.
Part of me says..just sell/clear and start over.

[Dilbrain]

Having just spoken with my IPA , he now tells me that

As your property is an included asset of your arrangement, it is possible that your creditors would ask for you to bring in the equity available in your house then ask you to maintain monthly contributions as well as they will look to try and achieve a maximum gain.

Sorry that I couldn't be more conclusive, but it all depends on what your creditors feel is the best offer available to them.
But if you feel you want to try this and use your equity as full and final settlement we can propose this but of course there are risks involved.

That wasn't expected , I guess my last chance to see this IVA through will be as Andy suggested .
I will talk to my mortgage company/ Secured loan company and see if I can get the terms extended in order to release some money each month.
Thanks all [8)]

[Michael Peoples]

If the property is jointly owned your creditors cannot claim for your wife's share of the equity. A full and final based on your half of the equity released would seem a sensible option and would leave your wife's share for relocation.

[Dilbrain]

Thanks Michael , I will explore that route. For whatever reason at the time , my wife's name was not on the deeds to the house.
Would it be possible to have her added before I make that proposal? Sorry if that sounds a bit clueless but I haven't even thought of that avenue prior to your suggestion.

[Michael Peoples]

It would be interesting to know why your wife was not on the deeds and whether she has a claim on the property. If she can show that she has an interest in the property it is likely that creditors would accept your share of the equity as full and final. If there is an issue she could seek legal advice and this would of course add to costs and diminish the funds in the pot.

There would be no point adding your wife's name to the deeds at this stage as it would be an unnecessary cost. She should be able to prove some form of interest in the property anyway.

[Dilbrain]

Hi Michael , thanks again:)
When I bought the house ( back in 2000/2001 ) myself and my wife were having problems and I was earning enough for a morgage on my own. A few years back we had a discussion with a lawyer friend about ownership rights and he confirmed that if I sold the house , my wife would indeed be entitled to 50%, regardless of whether her name was on the deeds/mortgage.
The stress of the last 5 months seem to have eradicated a lot of common sense and resourcefulness from my brain.
I will call both of my mortgage companies asking them to extend my loan periods in order to allow me to afford the IVA for the remining term. If that fails I am going to get some free legal advise ( about my wife's claim on the house ) before approaching the IPA with a proposal of 50% of the proceeds of the sale as full and final payment. Thanks for giving me some hope