A little back story; I went into an IVA due to the breakdown of my marriage and the ex leaving everything for me to pay, including a joint unsecured loan that was linked to the mortgage. At the time we owned the house 50/50.
This debt is with NRAM and it was put under my IVA in its entirety. It was my understanding that on completion of my IVA (crossing everything!) I would be discharged from this debt, but that NRAM would continue to look to him to clear the remainder.
However, I got a letter through saying how NRAM were going to increase my payments to cover the loan and 3 years worth of non-payments. So I called and apparently its a standard letter that has to be sent to both of us but that they are fully aware I am in an IVA and this debt is within my IVA.
So here's where it gets confusing. I explained how, despite being at least 4 years away from any probability of re-mortgaging, I do in fact want to re-mortgage the property when the time comes. I want to remove his name from the mortgage and buy him out. I was told by the lady at NRAM that they would block me from re-mortgaging until this debt was paid back. Firstly, can they do that if I have already been discharged from the debt?
Is it just that he owns part of the house, now only 20% and they would want to recover this outstanding debt from his part of the equity. (Which as it happens isn't enough.) And because there is a financial order now in place which states he gets 20% and nothing within it about the joint debt because its in the IVA, will I therefore be expected to pay it? I'm so confused!
I wish these IVA companies would make things clearer and explain all the future implications that such things as joint debt would have!
If anyone can put my mind at rest I'd really appreciate it.
As far as I am aware NRAM are no longer in the mortgaging business, so it would not be up to them. You would be re-financing the whole property with a new lender. This would, of course, depend on you qualifying, on your own, for the new mortgage in terms of income etc. come the time. This way NRAM would get the whole outstanding charge back and it would be up to your respective solicitors to work out who gets what out of any surplus. What NRAM could, possibly, block would be secured lending. i.e another charge on the property.
Although you have been absolved of responsibility, the loan still has to be paid.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
