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Posted: Tue Dec 18, 2012 7:09 pm
by DeanH
I am in the fourth yr of my IVA, there is a proposal for me to introduce a lump sum in yr 4 through re mortgage on my house. There is equity in the property, but i cannot get anyone to re mortgage the property for obvious reasons. When i first took the IVA out and this proposal was suggested, I did ask how i would be able to re mortgage with an IVA showing on my file. I was told by the company I am with that they have contacts who can help with re mortgaging, however they are now saying it is down to me to find somebody to remortgage the property as they no longer have dealings with any one.
I have told them I cannot get a remortgage, they have told me that one of the creditors is demanding the house is sold if it is not remortgaged, or i get made Bankrupt, can they do this?
Posted: Tue Dec 18, 2012 7:18 pm
by Shining
Hi, seems a bit harsh to make you sell your home. Is there an agreed amount of equity that you have to realise? Would further IVA payments in lieu of the equity cover the amount?
Maybe have a chat with your IP direct (assuming you haven't done so) as there are variations etc. that can be discussed in respect of the equity clause.
Welcome to the forum by the way.
Posted: Tue Dec 18, 2012 7:26 pm
by DeanH
there is an agreed amount, and I did suggest to extend the payment period to cover the sum, however i was told this was not possible, trying to speak to the IP is a pain, keep getting told by my account manager, i have to deal with her and she will pass anything on to IP
Posted: Tue Dec 18, 2012 7:30 pm
by Shining
You have every right to speak to your IP and the account manager has no right to tell you that you can't. Try emailing your IP direct and asking for an appointment for a telephone meeting.
If you don't have a direct email address maybe the link will help you source this.
http://www.insolvencydirect.bis.gov.uk/fip1/
Hope you get to talk to him/her very soon.
Posted: Tue Dec 18, 2012 7:34 pm
by DeanH
They are supposed to be sending me a copy of a letter from the creditor concerned asking for the property to be sold. I will contact the IP through email to ask to speak to him.
Thanks
Posted: Tue Dec 18, 2012 7:34 pm
by Foggy
Hi Dean. Modern proposals contain a clause stating thet, if there is less than £5k equity, they disregard the property, if more than £5k, which cannot be released, then a 12 month extension is applied.
Enlightened IP's have put forward variations in the past to bring older proposals into line with the newer ones. The fact that one of your creditors is unhappy isn't the point, unless they have a deciding vote -- this has to be decided upon by all creditors, not just the unhappy ones!
Might I ask who you are with?
Posted: Tue Dec 18, 2012 7:42 pm
by DeanH
Foggy, Is there a maximum period an IVA can run for? Mine runs for 72mth, I cannot remember why it was extended from the 60 mths I was originally told it would run when I enquired about an IVA.
I thought it would be strange for one creditor to demand this. We are with Money Debt & Credit.
Posted: Tue Dec 18, 2012 7:45 pm
by Shining
Is Northern Rock a creditor? Often they used to want 72 month proposals.
Posted: Tue Dec 18, 2012 7:48 pm
by DeanH
Lesley, no they are not a creditor. The debt i had was a large amount, so could it be that the IP put it over the period to make the monthly payments slightly smaller?
Posted: Tue Dec 18, 2012 8:31 pm
by Foggy
No, Dean, there isn't a maximum time an IVA can run for, so it could still be extended if agreed by all.
Posted: Wed Dec 19, 2012 1:52 am
by MelanieGiles
Unless the terms of your own IVA proposal specifically allowed for the property to be sold in the event that you could not re-mortgage - which would be quite unlikely - then this cannot happen without your agreement. Get your IP to confirm exactly what you are obligated to do, under the terms of your own arrangement.
Posted: Wed Dec 19, 2012 8:55 pm
by DeanH
Melanie,
The original proposal states under Assets that "I propose to exclude the property from the arrangement save that i will introduce the sum of £17500, which is maximum LTV that i can re mortgage for in year 4 of the arrangement in order to augment my monthly contributions."
However there is a modification which was approved under Modifications to Commercial Offers "The following property: is to be valued 12 months before the end of the arrangement and funds to the value of the debtors share of the equity shall be paid into the arrangement, in addition to any other funds. If the re mortgage is not completed within 66 months then the property shall be put on sale within a further 6 months."
I have today received a copy of the letter from the creditor and they are saying, the modification states that in the event of a remortgage not being achievable then the property would be sold to release equity for the creditors.
To be pedantic about it, the modification doesn't state this, as i have written above, it states that if the re mortgage is not COMPLETED within 66 months the property must be sold.
I must admit, when i signed up for the IVA I was under the impression I was agreeing to pay the £17500 not all equity in the property.
I really need some clarification with this, i certainly don't feel Money Debt & Credit are doing anything to help me.
After paying in for 4 years, i really cannot face going through the hassle of fighting bankruptcy, which is what is being threatened
Posted: Mon Dec 31, 2012 3:12 pm
by DeanH
OK I really need some help and advice with this. If anybody can help please reply, I will be speaking to MDC on wednesday, to see what they have put to the creditor.
From what i can see first off, their is conflicting dates as to when a lump sum is required, then if they do decide to push for Bankruptcy, they will be lucky to get anywhere near what they are getting on the IVA.
Posted: Mon Dec 31, 2012 5:02 pm
by MrsR
Hi Dean,
I am sorry that I will be unable to help, but shall bump this up for you.
Bump !
Posted: Tue Apr 09, 2013 3:46 pm
by DeanH
Ok apologies for dragging up an old thread, i am still having major issues with MDC.
one question i have for everyone / anyone. Does anyone know or have contacts with any finance company who will lend to someone with an IVA and who is self employed.