Reposession Question

[sonia_k]

Hi,
I'm in the 3rd month of my IVA and have had the mortgage on my flat increased by £300 pcm. I have asked the mortgage company to reconsider as I am not able to afford the increase but am able to afford the previous payment but they have refused to reconsider as I am also paying off some mortgage arrears. I cannot sell the property as it is in negative equity. I may be facing reposession and have been told that if this should go ahead and if the mortgage company were not able to sell the flat to pay off all the balance then I would be liable for the remaining sum. Is this correct? Would it be added to my IVA? Please advise. Thanks,

[facingittogether]

hi sonia!

sorry i cannot advise you, but hang on in there, there should be a expert along shortly who will answer your questions for you!

love barb x

[Viki.W]

Hey Sonia, was your IP aware of the increase when you applied for the IVA, was this anticipated? Please hang in there and a technical expert will advise you. X

[Cybus]

Is the increase to cover the arrears of your mortgage? What are the current mortgage arrears and was the IP aware of mortgage arrears at the time the proposals were drafted? You IP is your first port of call if you are having no success in re-negotiating mortgage repayments. I think you are going to have to first determine the amount of time it will take to clear the arrears and see if the IP can offer any suggestion as to how that can be done within you IVA

If the mortgage lender re-possesses then they will sell the property and value their security. You would then become personally liable for the difference between the Mortage outstanding and the sale price of the property when it is sold.

This would then become an unsecured liability in your IVA. However that said it, unfortunately, does not mean that all is well. The inclusion of this additional creditor to your arrangement is more than likely going to have a material affect on the outcome of the arrangement. Your IP is going to be best placed to advise on how their inclusion would affect the IVA.

[angelrainbow]

We are pre IVA (creditor meeting in 2 weeks) and were reposessed early July. Our proposal states that there is likely to be a shortfall in the mortgage (the house is on the market for a good £20K less than its market value)and our lender are listed as a creditor.

As far as I understand it you are liable for any shortfall when the property sells and for any mortgage payments and fees from the date of the lender taking ownership to the property selling. (Not sure of this in our case as we today received a closing balance asking us how we wil pay the arrears..maybe they have 'written off' the mortgage payments due until it sells, I don't know!)

So it can be added to an IVA proposal, but I think you will need to ask your IP or the experts on here for how it will work in your case.

I hope you can get this sorted and take it from me being repossessed is awful at the time but I already feel like a weight has been lifted now we are renting a bigger home at half the cost of our mortgage!

[moretolife]

hi sonia and welcome to the forum...sure you will find the advice you need...keep posting and good luck