full and final settlement in leiu of remortgage

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Post by Gaccream » Wed Sep 15, 2010 8:08 pm
I entered into an IVA in April 2007. I pay a 500GBP per month. I am currently on month 41 well within my 4th year. I do have a fourth year clause which states -

"During the 4th year the debtor must obtain an open market valuation of the property and provide this to the supervisor. Furthermore the debtor must obtain a minimum of 2 offers of remortgage. The debtor must immediately pay in 100% of the debtors share of any proceeds into the IVA. Monthly contributions may then cease and the supervisor may then take steps to conclude the IVA after writing to creditors and there are no objections in concluding early"

I have provided a open market valuation and have obtained 2 offers of remorgage offer one realised 2000GBP (1000 my share), the other suggested they would potentially offer upto 65% of the value of my proerty which is valued at 170000 (110500). My current mortgage is around 80500 so there suggestion was that they would potentially offer 30000 (my share 15000) - however, having applied with them the most they wil lend is 12000 (my share 6000) on a second charge and a joint appliction with my wife, a road I would prefer not to go down. This would invloved costs and therefore I have proposed to my supervisor a full and final settlement of 7500 in leiu of any remortgage and further monthly contributions. The loan is from my mum and has to be paid back over 2 years.

Do you believe I have met my share of the 4th year claus and would it be fair to suggest that the amount that my mum is prepared to loan me will bring my VA to a close.

It is immpossible to get offers of remorgage and surely the supervisor and creditors no this. My wife has even said and I think its fair comment that the 4th year clause says "the debtor must obtain a minimum of 2 offers of remortgage) - She isnt the Debtor and I alone cannot get substancail offers enough to add to the VA.

Please advise.
Many thanks
RPF - Learning more Every Day

Adam Davies

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Post by Adam Davies » Wed Sep 15, 2010 8:50 pm
I think that is an excellent offer and one that should be accepted.
Talk to your IP, produce the two offers [1k and 6k] and ask them to hold a variation meeting.You need to state that you will be using your disposable income to repay your mum so you will need the IVA concluded once these funds are paid over
Good luck
Andam Davies


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Post by carlmcmullen » Wed Sep 15, 2010 8:57 pm
Like Andy says, speak with your IP but if i am reading your post correctly, from what your saying you are potentially offering more then you can release by way of equity anyway so i think they would accept it.

You have attempted to get remortgage with 2 independent valuations so i would say you have fulfilled your obligations.


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Post by MelanieGiles » Wed Sep 15, 2010 10:17 pm
Why do you need to vary at all? If the largest offer of funding is £6,000, and your Mum is prepared to give you this money, this should draw the IVA to a very satisfactory conclusion I would have thought.
Regards, Melanie Giles, Insolvency Practitioner
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