Full & Final with mortgage arrears

[Nellie]

A good friend of mine entered his IVA shortly before I did, just over 2 years ago. He is self-employed but kept up with his IVA payments, but missed some mortgage payments. His sister has recently ‘married into money’ and offered to lend him enough to get a full and final settlement (at full value i.e £405 per month x 33 months = £13,365).
His IP wants an up to date property valuation and a mortgage redemption figure. He was in negative equity at the beginning of the IVA and that hasn’t changed because his property value has remained the same but his mortgage is about £2000 higher, due to the arrears.
He could borrow £2000 off his sister to bring his mortgage up to date before getting a redemption figure?
Will his IP be concerned about the arrears, given that he is offering a full and final settlement anyway?
Can anybody advise ?

[Shining]

Hi, I'm sorry I can't answer this but am sure someone will be able to, but feel his IP is best placed to give case specific advice.

[Niobe]

I have no idea either - one of the experts may be able to help but the IP is possibly the best one to contact as Lesley says.

[ginger3232]

Nellie - Were the motgage arrears present when the IVA was set up - or have they been auquired post IVA ? - reason why i ask is the late payments /arrears unless tackled will hang around on the credit report after completetion.

Perhaps some money could be used to tackle these, and avoid any extra charges /interest - then a offer of the rest of Lump sum to address the IVA

[Broke of London]

It's not really to do with the iva specifically, but why not borrow money to pay off the mortgage arrears as they will need to be paid back as some point? He may as well get all the debt sorted in one go and then make monthly repayments on the whole lot to his sister.

[Nellie]

Hi
No he was up to date with his mortgage when the IVA started, but I don't think he is allowed to borrow money, except for an IVA settlement. His real worry is that being in arrears might impact on the IVA settlement in some way

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by ginger3232

Nellie - Were the motgage arrears present when the IVA was set up - or have they been auquired post IVA ? - reason why i ask is the late payments /arrears unless tackled will hang around on the credit report after completetion.

Perhaps some money could be used to tackle these, and avoid any extra charges /interest - then a offer of the rest of Lump sum to address the IVA

[ginger3232]

He can be "gifted money" - and what he choices to do with this is his business. or someone could make a direct payment to his mortgage account.
Can i be rude and ask how he manage to fall into arrears - despite being allocated an amount of money for his mortgage ??

[Shining]

do you know the reason the mortgage was put into arrears as an allowance in his I&E would have allowed mortgage payment and any other problems shouold be brought to the attention of the IP.

Not sure how the IP will view it but it's probably best to have a chat with the IP direct.

[Broke of London]

It won't be the first time his IP has seen anyone fall into mortgage arrears so they will be able to guide him on this and the full and final. x