We're in a terrible dilemma. We owe £40,000 on an interest only mortgage due next May and cannot pay it - should we tell bank now or wait until May? Also, we're in an Iva, at the end of which we need to pay our creditors around £80,000. At the moment we're pretty sure we're still in negative equity. What is likely to happen to us? What hope is there for us - I'm 54 and husband is 64. We're on a council housing list, but not sure which way to turn. Any help would be welcome.
When you say you are due to pay 80k at the end do you mean you are to try to release equity of 80k??Normal practice is that if equity cannot be raised then additional payments into the IVA may be made often an extra 12 months,your IVA paperwork should state what will happen in the event of equity being unavailable.
You say you are due to pay 40k, I asume this is the capital to be repaid? Was this problem mentioned when you started the IVA?
What is the value of the house?
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
You will need to speak to your IP as soon as possible, if only to be clear in your own minds at this stage.
If the £80,000 due to your IVA is based on equity release you may not have to pay this as there is no equity. Have you re-read your proposal regarding this clause? It is a very common problem at the moment.
Your IP will be able to advise in detail - but do have the chat as soon as you can.
MelanieGiles wrote:
Do you mean that your actual mortgage is due to be repaid in May next year?
yes, one of the mortgages, other two (totalling £160,000) expire in 2014. We've not missed a payment to date, but worried about going to bank as we're in an IVA. Future looks very bleak at moment and dont know where to turn.
plasticdaft wrote:
When you say you are due to pay 80k at the end do you mean you are to try to release equity of 80k??Normal practice is that if equity cannot be raised then additional payments into the IVA may be made often an extra 12 months,your IVA paperwork should state what will happen in the event of equity being unavailable.
You say you are due to pay 40k, I asume this is the capital to be repaid? Was this problem mentioned when you started the IVA?
yes, need to release equity. Even if they extend another 12 months, it's not going to be anywhere near this amount. Cannot see anything in our paperwork. We've been told that when the IVA ends, we will be thrown to the wolves again, one of our creditors will declare us bankrupt and then we'll probably be on the streets as Council don't want to know, neither do private landlords.
Very very worried.
Who has told you this? It's complete nonsense. If you successfully complete then your remaining debts are written off. Your creditors won't be able to touch you and you won't be declared bankrupt.
People in an IVA or who are BR are able to rent from both the council and private landlords.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
