Posted: Fri Aug 10, 2012 12:58 pm
We have had our IVA for just over a year and due to unforeseen circumstances things just went from bad to worse.
We spoke to the IVA company and managed to get our lenders to accept a full and final offer with help from family members.
At the start of our IVA it was agreed that they would release equity at the end of our IVA, 5 years. We never got round to signing the equity release documents.
Recently we received something informing us that after we pay the F&F they still require the release of equity. Does this sound right to you? Our property also has negative equity and we have an interest only mortgage at the moment.
Another question I had was about a second property we owned. Our IVA company made us give it up. It was sold for more than we owed to the mortgage company, however we never heard anything about what was paid to the company we had a loan from. I always thought that it would then reduce how much we owed them and how much we were paying to £? I don't know if any of this is really relevant seeing as we already have a F&F accepted.
Prior to this when we were struggling, we spoke to them and the monthly payment was reduced, however the person we spoke to initially was unhelpful and essentially told us to default on our payments then submit our change of circumstances. He also told us that they would be declined because going from around £650 to £400 per month was too little etc but the lenders accepted this. He had said that if they declined they would cancel our IVA (is this even legal?). We were also informed that we would be able to continue making payments on our car (we had leased a car and were due to return it this year which was after 3 years). The IVA company said with their permission and help the car company should be able to allow to continue making monthly payments for the car. It didn't quite work out that way as they declined after running a credit check and we are now left without a car which makes it impossible and very expensive for my husband to get to work and for me to do anything in relation to our child such as taking them to nursery.
We also wanted to move house as we have a bigger family now but renting may prove difficult as they may run a credit check once again. Our current property has 2 bedrooms and we can rent it for more than our mortgage due to the area we live in. We were thinking of moving to a less expensive area to allow us to rent a bigger property. However I am not sure if we will be able to do that. My husband suggested getting a mortgage but since we have had our IVA for just over a year this will remain in our credit file for another 5 years right? Does that mean we cannot get a mortgage until 5 years from now?
Sorry for the long post, with ranting and rumbling. But I hope someone can answer especially the following
1. Will we need to release equity?
2. Can we get a mortgage before the 6 years.
3. Can we rent?
4. Car? Is it possible to get another car?
We spoke to the IVA company and managed to get our lenders to accept a full and final offer with help from family members.
At the start of our IVA it was agreed that they would release equity at the end of our IVA, 5 years. We never got round to signing the equity release documents.
Recently we received something informing us that after we pay the F&F they still require the release of equity. Does this sound right to you? Our property also has negative equity and we have an interest only mortgage at the moment.
Another question I had was about a second property we owned. Our IVA company made us give it up. It was sold for more than we owed to the mortgage company, however we never heard anything about what was paid to the company we had a loan from. I always thought that it would then reduce how much we owed them and how much we were paying to £? I don't know if any of this is really relevant seeing as we already have a F&F accepted.
Prior to this when we were struggling, we spoke to them and the monthly payment was reduced, however the person we spoke to initially was unhelpful and essentially told us to default on our payments then submit our change of circumstances. He also told us that they would be declined because going from around £650 to £400 per month was too little etc but the lenders accepted this. He had said that if they declined they would cancel our IVA (is this even legal?). We were also informed that we would be able to continue making payments on our car (we had leased a car and were due to return it this year which was after 3 years). The IVA company said with their permission and help the car company should be able to allow to continue making monthly payments for the car. It didn't quite work out that way as they declined after running a credit check and we are now left without a car which makes it impossible and very expensive for my husband to get to work and for me to do anything in relation to our child such as taking them to nursery.
We also wanted to move house as we have a bigger family now but renting may prove difficult as they may run a credit check once again. Our current property has 2 bedrooms and we can rent it for more than our mortgage due to the area we live in. We were thinking of moving to a less expensive area to allow us to rent a bigger property. However I am not sure if we will be able to do that. My husband suggested getting a mortgage but since we have had our IVA for just over a year this will remain in our credit file for another 5 years right? Does that mean we cannot get a mortgage until 5 years from now?
Sorry for the long post, with ranting and rumbling. But I hope someone can answer especially the following
1. Will we need to release equity?
2. Can we get a mortgage before the 6 years.
3. Can we rent?
4. Car? Is it possible to get another car?