We want to offer a f&f on our Iva. Our inlaws have offered £3k of their own money to settle. We pay £165 with around 30 payments remaining. The reason we want to settle early is to be able to sell our house. The area we live in is in a very bad decline. We've even removed our son from the local primary school because of it. We have him in a lovely school now but it's a 12 mile round commute in rush hr traffic twice a day. The cost of fuel is expensive and it takes around 45 minutes to get there and back due to it being a busy road. We thought we could sit out the commute whilst the iva finished then look to move. The area we are in is just hideous. It's affecting my health and I'm stressed all the time. I've already had shingles induced by stress and lost earnings from work whilst I was unwell. Our home was valued at £130k but estate agents said it would reach £125k due to stamp duty. We owe £102k on our mortgage & £21k secured loan. Does the f&f offer look like a good deal to our creditors? If it's rejected what are our options then? Honestly If it's rejected then I would consider bankruptcy. If we sold our house how long would we have to wait before we could buy again? Iva would drop off credit file 2017, are we going to have to wait til then? Would anyone consider us for a mortgage before then? What are our chances of renting? Are we going to get turned down because of our rubbish credit history. I'm so fed up of this iva and house stress ruling my life. I have 3 kids wonderful kids and should be enjoying them, but I can't remember the last time I felt happy. All we want is to try to repay some of what we owe and move on with our lives to a better safer area. It feels like we're being punished for past mistakes and I honestly can't ever see our lives moving forward without this f&f being accepted. Any thoughts on this would be greatly appreciated.
Hi and Welcome to the forum.
I'm sure one of the experts and or moderators will respond soon with a more knowledgeable view but my initial thoughts on ff are around the amount of your remaining payments esp if theres no change such as loss of job or illness.
Speak to your ip as they will take a view on your chances and I supposr they cam always say no And you carry on.
£4950 would currently be what's technically left to pay based on what we pay now. We've already had to reduce our payments once due to loss of earnings and another baby. The fact is I actually can't even function at the moment. I'm so stressed and anxious all the time, it's all because we live in a rubbish area. Crime and the police sadly frequent our road. My health can't take much more of this. I'm just about managing to hold down my job but any further stress and I genuinely don't know how much longer that'll last. Can someone please please shed some light on us being able to move forward. Will we ever get a mortgage before 2017 if our f&f is accepted? If so what sort of deposit are we looking at? If not will we get approved to rent a house? We just can't get any definitive answers on this.
Hi. You have around £4950 outstanding. But .. you also have the question of equity to address. That would have to be formally assessed and agreed with the creditors as to whether a) there is any to worry about, and b) if there is, do they want to pursue it ?
If you can get the IP to agree the valuation of £125k, there should be no problem there.
It is always worth discussing your best offer and the reasons with your IP, they can often be surprisingly helpful. Naturally this depends upon who you are with.
Now --- if you do sell, irrespective of if you are still in the IVA or not, you aren't going to get a sniff at a mortgage until 2017. If you chuck it all in and go BR now, that sniff will not be until 2020 !
It is possible to rent, but you need to be upfront with agents, or rent privately, as you will fail the routine credit checks. That said, many IVA'ers have managed to rent whilst still in their IVA's.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks. Our estate agent valuation confirms the marketing price should be £130k and we will achieve £125k.
We owe £122k on secured lending andcwithvestate agency fees and legal fees of approx £3k there is nothing left!
Based on the valuation we have £3k equity but more than 85% LTV so nothing left for our creditors now or in 2 yrs time!
did you tell your estate agent, you needed a quick sale this could lower there marketing price.
when I sold my flat the estate said it would get £95,000 after not saleing for 6 months. I had to take £92,000
IVA now over with and it was worth it.
now starting my life again,
It is possible that your IVA may continue on because once the house has been sold the cost of rentinmg may be lower than the current mortgage and secured loan payments. Your IP will need to do the sums.
Will they really consider that Michael? We haven't been told that by our IP. God this really is like a life sentence hanging over us. Rental will be anywhere between 800-950 pm we've already investigated that one. For a 3 bed house same as we currently have. We're not trying to avoid our debt and we 're not looking to move to bag a load of extra cash each month. Genuinely my mental health is extremely delicate at the moment. For my own sanity and that of my family we have to move. A f&f seemed the best way to ensure we repaid as much as we could. We can't afford to rent our house out and move in to a rental and I really don't want my hand to be forced towards bankrupcy. But if my health deteriorates to the point where I can't work then we won't be able to afford to pay our iva or many household bills.
Can you recommend how best we approach this with our IP to endure they are fully educated on our situation before they present the offer the to creditors. We have to stand the best possible chance of getting this offer accepted. Thanks
Send a copy of the local paper or something from an estate agent's office showing the average cost of rentals in your area. Moving house may lead to other increased costs such as travel and if this is the case point this out to the IP.
Once the IP calls the variation for the F&F they will at least have the information needed should creditors raise any queries. It would be easy to put into the variation that the IP has investigated the possibility of ongoing payments and found no affordability to do so. Anything you can provide to help your case will be of benefit to the IP as they try and head off any potential problems. Best of luck with the offer and let us know how you get on.
Thanks Michael. My husband fuel costs to work would increase as would mine as we are both moving further away from places of work. Council tax would be slightly higher I think too. In order for a f&f to be accepted do you have to be in a position where you can no longer afford the repayments? We want to do a f&f offer so we can sell and move on with our lives to a safer area. Somewhere our children will be safe. Currently where we live cars are frequently vandalised and more recently one of our neighbours was beaten in front of her young children by another neighbour. Someone was even killed round the corner from where our house is. You can see why we simply cannot continue to live here and why we took our son out of the local school. Our inlaws are offering their own money to help us as they can see how we are struggling living where we are. They won't offer to pay the money as an additional payment it's f&f or nothing! After all expenses etc if we did move we would probably still have some disposable income left, maybe less than we do now to pay our creditors maybe the same. Do we have to prove how much? We were led to believe this is probably the only route that would allow us to get our house on the market and sold. In your experience with f&f offers is it a simple yes or no answer or can the creditors say yes and put conditions on it? Like if our house sold for more than the £125k (which it won't!) could they still take money? As I stated before we are not doing this to get out of paying back what we owe but our circumstances have changed now to a point where we cannot wait til 2017 when the iva is finished to move.
It all sounds fine and even if there is a little surplus left this could be used to repay the loan. Hopefully everything will be fine but it is always worth trying to avoid any possible pitfalls by providing all the details up front.
Following your advice Michael I've sat down today and worked on some figures to send alongside our offer. After increased council tax, rent of approx £800pm, additional fuel costs to work etc I worked out we would only have a surplus of around £80pm instead if £165pm as we currently do. Also found lots of rental information to put in with our proposal. (Just our of interest how is it viewed to use any additional monies left from the sale of the house to put towards a deposit in a rental? After investigation it would appear some letting agents need around a 3-6 month upfront deposit and a guarantor. Not to mention the normal deposit for renting. We'll have to try to source this out of the sale proceeds so is it also worth including this info?!)
It is perfectly reasonable to try and retain the funds for a deposit and rent in advance. This is common enough practice and hopefully there is no problem with creditors. Good to see the I&E does not show improvement and all the info you now supply will make the IP's job easier.
