What happens if I sell my house?

[louiseh]

Justed started IVA, and have 3 years remaining on my mortgage fixed rate deal. If in 3 years time I decide to sell up and rent instead of remortgaging what happens if I have some equity but not enough for a full and final settlement offer. I have no 4 year equity release clause. Would the money just go into the IVA pot and I'd continue paying for the full IVA term at the same level. Our return is 48p in pound so I don't think we would reach 100% paid to reduce term of IVA.

[catullus]

Assuming that you were living in the property at the time of the IVA details of your home, value, mortage
etc must have been included on the statement of affairs.

It would be VERY unusual for there to be no reference whatsoever to the property in the proposal itself. Are you absolutely sure this is the case?

Even if there is no mention in the proposal I think that the equity (less reasonable expenses for deposits etc) would have to be paid in to the IVA probably under the windfall clause but again I must stress how unusual that would be.

[louiseh]

The IVA term is extended by 6 months to inlcude any equity, at time of IVA little or no Euity. So basically I would be better off continuing with variable rate of the Building society for a further 2 years 6 months and only sell after the IVA had complteted.

[catullus]

Ah, you didn't mention the six month clause.

Under those circumstances, because you've already made an offer to buy out the equity (the 6 months) which has been accepted, in my opinion you could sell the property within the IVA and keep the equity, provised that your household expenses didn't change significantly.

I would check this with your IP, however, because there might be other clauses in the proposal that might change this