I am in the last year of IVA. I am quite behind on payments due to a period of redundancy and various car issues which I intend to solve by extending the agreement if needed. My question is there is a baloon payment of £20,000 on the house - trouble is it is shared ownership so no equity. What is the position on this? I have paid in excess of the original required cash amount due to pay rise and have paid £32000 of the original total sum of £44000 -(the £44000 inludes baloon)
It is almost impossible to raise funds on a shared ownership property without actually buying out the housing association's[HA] share and sometimes this is not allowed anyway so I do not see how you were ever going to raise £20,000. You should have an urgent talk to your IP and provide an up to date valuation and mortgage statement. The IP should know what share is owned by the HA so can easily calculate your equity. If there is none I would be looking to have the IVA closed down after the arrears extension has been completed.
This will require a variation particularly if creditors were offered a guaranteed minimum dividend but there is no way you can raise £20k.
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It is almost impossible to raise funds on a shared ownership property without actually buying out the housing association's[HA] share
Which is what I thought - it would cost £30000 to buy the HA share! The guy from Grant Thornton who did the proposal was aware of part ownership. I will get in touch with them and see what they say
