Advice on 6th year IVA

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dancgull
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by dancgull » Sat Jun 16, 2018 8:58 am
Right ive been putting this off too long-here goes.
We paid the month 60 final payment of our IVA to Knightsbridge back in December last year.This coincided with them moving our IVA on to Creditfix.If i understand the process correctly we should have then been told whether we had to remortgage (which we really dont want to do) or just continue with our payments for another 12 months to conclude the IVA ( massively our preferred option) .
We received an electronic contract from creditfix to agree to their t and cs which we responded to but that was the only communication we had from them.
When we made the final payment we cancelled the standing order so to be honest when they did nt contact us to resume payments it was nice to be £260 a month better off at the end of January. We rang them dutifully and were told they had a backlog and would be in touch.Obviously we figured we d put the ball back in their court so when they failed to contact us we let it ride -glad of the extra money in February.
So this continued for a couple more months and we re thinking wishfully maybe its just been forgotten whilst realising that we really need closure on this. Then finally i got a reply a couple of weeks ago but it was very vague saying only that they know there is equity in our house and that the IVA will be extended for 12 months and that we should have received a letter detailing this (which we have not).
I emailed on Monday asking them to clarify exactly what was happening and had no reply.The IVA is in my wifes name and obviously we need closure on this so she can get a bank account again etc.Also we re worried that they might suddenly ask for all the missing payments from Jan to June this year in one go.which we havnt got. Just need some advice what to do next please as thuis is becoming a massive worry.
Thanks in advance.
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Foggy
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by Foggy » Sat Jun 16, 2018 9:16 am
The equity position should have been addressed at month 54 -- I am afraid it is as much your responsibility to push these things along as it is theirs. In fact, more so, as it is your IVA not theirs!

You will need grasp the bull by the horns and force a response from them.

Hopefully, as they have also been at fault, and continue to be so due to their own inaction, they will agree to restart the 12 month extension clock from now, which will, I am afraid prolong the agony a while longer, but better than failing the arrangement.
dancgull
Posts: 6
by dancgull » Sat Jun 16, 2018 9:32 am
Foggy wrote:
The equity position should have been addressed at month 54 -- I am afraid it is as much your responsibility to push these things along as it is theirs. In fact, more so, as it is your IVCA not theirs!

You will need grasp the bull by the horns and force a response from them.

Thanks for your response Foggy.Knightbridge did bring in amortgage company at month 54 who were really trying to hard sell us a remortgage.Eventually i managed to make it clear to them that it was nt viable and they lost interest.then no contact from Knightsbridge until the transfer to creditfix.i really just want to pay for another 12 months and that be the end of it.should i call creditfix to this end?
dancgull
Posts: 6
by dancgull » Sat Jun 16, 2018 9:42 am
I should also add that i feel we were mis sold our IVA ( which is in my wifes name only). when we started the process we were led to believe that the equity release clause was just a formality and no one would offer us a remortgage as my wife is in an IVA and therefore we would just have to pay another 12 months and that would be it.Now at the other end of the process it seems that this was basically a lie to get us to sign up and chances are they will make us remortgage and we ll end up paying 100p in the £. The point of the IVA was to try and pay back less obviously - if id wanted to remortgage to pay off the debt we could have done that 5 years ago!
I ve tried to research mis sold IVA s but hav nt found much - any thoughts?
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Foggy
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by Foggy » Sat Jun 16, 2018 10:12 am
dancgull wrote:
I should also add that i feel we were mis sold our IVA ( which is in my wifes name only). when we started the process we were led to believe that the equity release clause was just a formality and no one would offer us a remortgage as my wife is in an IVA and therefore we would just have to pay another 12 months and that would be it.Now at the other end of the process it seems that this was basically a lie to get us to sign up and chances are they will make us remortgage and we ll end up paying 100p in the £. The point of the IVA was to try and pay back less obviously - if id wanted to remortgage to pay off the debt we could have done that 5 years ago!
I ve tried to research mis sold IVA s but hav nt found much - any thoughts?


Very difficult to prove a mis-sold IVA .. what ifs and wherefores do not hold any weight. At the time it was (and still is to some extent) a formality --- 12 month extensions were the norm and remortgages impossible to get. However, the mortgage market is ever changing and crystal balls are far from guaranteed.

The fly in the ointment here is that you, presumably, agreed to CF's terms and conditions, which might well include changes to your original agreement, such as the obligation to get secured lending as opposed to a remortgage. Dig out what you have now agreed to and see what it says.
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Lisa Thomas
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by Lisa Thomas » Mon Jun 18, 2018 3:05 pm
Have you had a recent valuation and redemption figure from any secured creditors to establish whether your wife's share of equity is above the standard minimum (35k)?

If you can challenge Creditfox's calculation of equity the extension may not apply.
dancgull
Posts: 6
by dancgull » Tue Jun 19, 2018 4:33 pm
Lisa Thomas wrote:
Have you had a recent valuation and redemption figure from any secured creditors to establish whether your wife's share of equity is above the standard minimum (35k)?

If you can challenge Creditfox's calculation of equity the extension may not apply.


Hi Lisa thanks for your response .Sorry but could you just clarify what you mean please? If we were any good at understanding this stuff we probably wouldnt be in this mess! Thankyou
dancgull
Posts: 6
by dancgull » Tue Jun 19, 2018 4:48 pm
dancgull wrote:
Lisa Thomas wrote:
Have you had a recent valuation and redemption figure from any secured creditors to establish whether your wife's share of equity is above the standard minimum (35k)?

If you can challenge Creditfox's calculation of equity the extension may not apply.


Hi Lisa thanks for your response .Sorry but could you just clarify what you mean please? If we were any good at understanding this stuff we probably wouldnt be in this mess! Thankyou


Cerditfix say our equity is £118k which is probably about right I think..
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Foggy
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by Foggy » Tue Jun 19, 2018 4:49 pm
dancgull wrote:
Lisa Thomas wrote:
Have you had a recent valuation and redemption figure from any secured creditors to establish whether your wife's share of equity is above the standard minimum (35k)?

If you can challenge Creditfox's calculation of equity the extension may not apply.


Hi Lisa thanks for your response .Sorry but could you just clarify what you mean please? If we were any good at understanding this stuff we probably wouldnt be in this mess! Thankyou


In a nutshell: if the amount of equity your wife has is less than £5k the equity release clause doesn't kick in. In your case it will !
dancgull
Posts: 6
by dancgull » Tue Jun 19, 2018 5:05 pm
Foggy wrote:
dancgull wrote:
Lisa Thomas wrote:
Have you had a recent valuation and redemption figure from any secured creditors to establish whether your wife's share of equity is above the standard minimum (35k)?

If you can challenge Creditfox's calculation of equity the extension may not apply.


Hi Lisa thanks for your response .Sorry but could you just clarify what you mean please? If we were any good at understanding this stuff we probably wouldnt be in this mess! Thankyou


In a nutshell: if the amount of equity your wife has is less than £5k the equity release clause doesn't kick in. In your case it will !


Thanks Foggy so can CF force us to remortgage with someone they dig up? Knightsbridge tried to do this and they ( the mortgage company) were extremely pushy
threatening us with the failure of the IVA if we didnt accept their terms.It was after this that they moved us on to CF.I wonder if that was why?
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Foggy
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by Foggy » Tue Jun 19, 2018 5:21 pm
dancgull wrote:
Foggy wrote:
dancgull wrote:

Hi Lisa thanks for your response .Sorry but could you just clarify what you mean please? If we were any good at understanding this stuff we probably wouldnt be in this mess! Thankyou


In a nutshell: if the amount of equity your wife has is less than £5k the equity release clause doesn't kick in. In your case it will !


Thanks Foggy so can CF force us to remortgage with someone they dig up? Knightsbridge tried to do this and they ( the mortgage company) were extremely pushy
threatening us with the failure of the IVA if we didnt accept their terms.It was after this that they moved us on to CF.I wonder if that was why?


If a remortgage is available, yes, they can force you to take it, subject to the limitations in your agreement. The extension is only an option if the remortgage isn't available.

The limitations are usually:
Remortgage is to a maximum of 85% LTV
Cost of the remortgage is no more than 50% of current IVA payment.
Amount released will not exceed 100% of the original debt and fees.
Term does not extend beyond the later of debtors state retirement age or existing motgage term.
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Lisa Thomas
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by Lisa Thomas » Wed Jun 20, 2018 8:07 am
Sorry for the typo in my post above - I meant £5k not £35k minimum equity.

As you have over £5k equity then (depending on your terms) It would seem that the year extension may apply to you - watch my video here -

https://youtu.be/PHfc85n39U4
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