Hi, I received this email from Stepchange today after making a full and final offer to remortgage to pay the full amount due to my IVA I.e 3 years left @£214 p.m and also an extra 12 months @214 p.m to cover the equity clause. So I have offered £10,200 but have received the following email.
The terms of your IVA proposal state the following:
“Sale of property excluded
For the avoidance of doubt, at no time do I intend to sell my property and the IVA does not include any requirement whatsoever to place this property on the market for sale. Furthermore, I shall not attempt to raise funds secured on the property other than for the purpose(s) set out in my proposal. If I do, this will be considered a breach of the IVA.”
This term therefore excludes you from re-mortgaging the property during your IVA until the re-mortgage process starts, this is due to start 6 months before your final payment is due into the IVA.
This process will determine the equity in your property and if further funds are to be paid into your IVA.
Your creditors can consider a 3rd party lump sum offer to complete the IVA early.
StepChange are missing the point ........This is why you are seeking a variation to the agreed terms. You are, basically, saying that, with creditors agreement, you are willing to attempt to remortgage now, for the purposes of making a full and final offer, based on what they would be getting over the term and assuming a 12 month extension. The benefits, to both creditors and IP alike, would include them getting what they have signed up for, yet saving on long-winded administration over the nest three years.
It is not up to Step Change as to what your creditors can or cannot consider or agree to change.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I would reply to the email they sent you, along the lines of my post to you, above and request that they put the request for a variation to the creditors.
Out of interest --- how far have you fot with re-mortgaging ? This is often a difficult thing to do. A few experienced brokers do actually have products for this purpose and it is not unheard of in the industry --- they generally liase with the IP on your behalf.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks Foggy, I will reply and hope for a more positive outcome! I've applied and been accepted for a mortgage in principle with Zebra money who have been incredibly helpful during the whole process, and I would strongly recommend them.
Hi guys, thanks for your advice! I've received this email from stepchange today. Hopefully now they will move it on and put my offer to my creditors. What is usually the process from this position?
Your Individual Voluntary Arrangement (IVA)
Thank you for your recent email advising on your reasons for offering the lump sum.
Before I can write your variation report I need you to provide the offer from the mortgage lender you have approached. This will need to show the amount you are borrowing and the repayment amount per month, sometime mortgage lenders will call this a Mortgage In Principle.
I will also need to you to provide a redemption statements for your current mortgage and secured loans.
Better news, now that they are listening ! Once they have the further paperwork, it usually takes around 3 weeks to write up the variation request and they will them write to all creditors, advising them of the offer and a date for the virtual meeting.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
