www.iva.co.uk

I'm in a bit of a state and need some advice please.
I've had an IVA successfully in place for approx 18 months, no major problems, just ticking along. However, I have got myself into arrears with mortgage - not missed any payments,but made underpayments due to serious shortage of funds with overtime drying up (relied on overtime heavily)and general increase of cost of living, food, petrol etc.
Mortgage Lender (Nationwide)were initially ok and put me on monthly payment plan in an attempt to address the arrears. Whilst I still maintained monthly payments to them, I have been unable to stick to the agreed payment plan and theyv'e lost patience and was told yesterday that am now being passed to litigation department. Apparently its ''last chance saloon'' and Litigation dept will contact me to agree an affordable payment plan which I MUST stick to and never default. As long as I stick to this, no further action will be taken.
I am fully aware of the consequences and any more cock-ups on my part will result in them going for court order to re-posess. My problem is that Im frightened to tell Nationwide am in IVA (I don't think they know)now that its at this stage in case it goes against me and they don't let me go on a re-payment plan, and Im frightened to talk to my IP supervisor in case Im in breach of IVA??
I just feel so stuck in the middle, don't know what to do for the best, very very frightened and although firmly believe in being up front and honest, feel that no matter which way I turn I've had it?!
Please can some-one advise me as to my position.
Many Thanks

Hey Bev, how awful for you. I think you should wait for a technical expert or someone more on the know to advise you on this one. Sorry you've had all this upset. X

Thanks Viki - my own fault though. Just to add, I've always found my IP extremley helpful,very supportive and understanding - its not that I feel I can't talk to them, I have an excellent named contact who deals with me on an individual basis, its just am very scared and frightened to tell them about the arrears in case it fails my IVA.

Hello bev.nn,

How much do your mortgage arrears amount to? Is it more or less than a total of 3 months of the usual monthly payment amount?

Hi - it equates to around 3 months usual payments.

I cannot see why the Nationwide would be concerned about your IVA, if they are a fully secured lender. They will, of course, be concerned about your mortgage arrears, and if you are to try and clear these over the next few months, your IP will need to be informed of the situation as this will have to be funded.

It sounds to me as if the burden of having a mortgage, and an IVA, has become too much - and perhaps one has to go. Which one, will depend upon your priorities, and if you go bankrupt as a result of a failed IVA, you may find that you lose the house in any case.

I think a chat with your IP is in order to see if they can make any suggestions to you.

Thanks Melanie, will I be in breach of my iva in any way by having these arrears?

Hi bev.nn,

As you're seeing three months arrears is the point at which mortgage lenders are often prepared to initiate reposession proceedings. If at all possible I'd suggest you ensure that the arrears remain less than a total of three months payments.