Warning For Remortgage Clause

[xopo99]

Hey Folks,

Just thought I would make you aware of this one, which has totally changed my IVA.

I am in the last six months of my IVA and I was expected to remortgage after the fourth year to release funds, and obviously wasn't able to due to recession, etc. I contacted my IVA bloke yesterday to enquire about other methods of raising money to satisfy the creditors.

To my surprise, and this is something I was never told, he advised that I would only need to pay the outstanding amount for the remaining six months, as it would meet 40p in the pound which was needed by the agreement.

All along he had told me I needed to remortgage, but I suspect he never actually read the ins and outs of the agreement when it was passed over to him.

The long and short of it is that I only have around 4k to pay and sit it out for six months, rather than raise a heap of new secure debt, which I thought I would.

I have been unduly worried about finding thousands of pounds which I thought I had to or face another 12 months of iva, when the simple fact is that I never needed to.

What I am trying to say is, unlike me, you should make sure you know the full facts about your IVA.

You may not have as much of a mountain to climb as you thought you had.

Good Luck.

[kallis3]

It may be because you have little or no equity and your IVA is pre protocol.

I think the vast majority of us now have it written in that if we can't remortgage, then our term increases by 12 months.

You're very lucky that you will be able to complete in 5 years.

[blodwyn5]

Hi Xopo99,

Exactly the same has happened with myself and hubby. We also only have 6 months left and were asked for a valuation on our house and mortgage redemption statement back in October, which we sent to payplan. We were worried because we had approx 30K equity in our property.

We received a telephone call from payplan in November and they said that we didn't have to remortgage and our IVA's will end in July 2011 as planned. We have both met our minimum payments and more (we only had one raise in payments last July after our review)

Our proposal does state that if we cannot remortgage in the final year then we will have to pay a futher 12 months but hubby will have paid more or less the full amount of what he owed to the creditors plus Supervisors fees and I will be approx 3K short to the full amount.

So all in all it is very good news and maybe the dim light at the end of a very long tunnel is now getting very bright.

[:D]

[MelanieGiles]

What a shame that you have been unduly worrying about this for some time, when the solution was actually at everyone's fingertips! But at least you now have some good news to report and light at the end of the tunnel.

[kallis3]

That's excellent news.