Currently realy struggling to stay a float with my IVA.... The first six months have been fine but due to recent lower wages and other unexpected expenses due to my dad being in and out of hospital I am struggling to meet my mortgage payment. I paid the interest only last month and if i pay the full amount this month i will be left with nothing.
With this in mind i was thinking of trying to sell my house and try and rent somewhere cheaper for a few years. I would be left with a few thousand pounds owed to NR.
Does anyone know if this is possible are would this me be classed as credit?
You would have to get permission from your IP to sell your house but there is no reason why not. I don't know whether or not the shortfall could be incorporated into your IVA.
As ivas4us says, have a word with your IP and be guided by them.
In the meantime you could ask for a payment break for a couple of months while you sort yourself out.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Why not explore whether your IP would be prepared to reduce your payments if you are struggling, rather than taking the drastic step to sell your house. You can always do that as a last resort, but see what other options are available first.
Speak to your mortgage company also and see if they will allow you to switch to interest only for a set period. This may well be no more expensive than renting and saves the upheaval of moving. In addition, the property market is at it's worst point and it may be much more beneficial to wait until it recovers before you sell. This would not only avoid a shortfall to N Rock but also may raise enough to offer a full and final to creditors.
There has been a lot of bad publicity on here concerning Northern Rock not all of it to be taken too seriously I hope. My husband does some work for the samaritans - three telephone calls to NR secured a twelve month mortgage break for an individual. Not bad comming from a BS who seems to have the reputation of a "hard man"> J
.... being at your wits end (I cant cope with all of this any longer and I want out). Not sure if I am reading you right but I wondered if that was the case? Anyhow, if you want out that is always an option. With your father being unwell and other events going on you may have reached the wits end thingy and are looking for help to get out. Houses are only bricks and mortar and if you can only exist with the mortgage but live and pay rent.... It doesnt mean youre a failure just that life can be very unpredictable. With the best intentions in the world some things are just not meant to be.
Good luck now.
Last edited by freelili on Tue Jul 28, 2009 9:55 am, edited 1 time in total.
Definitely talk to your IP. You should also have another look at your proposal and any creditor modifications to see exactly what is and isn't allowed under the terms of your IVA.
Your Insolvency Practitioner may well be in a position to help you, or at the very least will be able to advise you on whether selling your house is allowed under the terms of your IVA.
