Selling a property that is in negative equity

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dani233
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by dani233 » Tue Mar 27, 2018 9:55 am
Hi, I have completed my IVA, have my completion certificate and it's no longer on my file. My credit score is going up.

Whilst in the Iva we rented out our flat and moved to a rented house as we outgrew the flat and it was in negative equity of about £20,000!!!

Anyway, it's costing us around £200 a month to keep the flat, so ideally we would like to sell it now. House prices have gone up so we would be looking at about a 5-8 grand loss if we sold. We have an interest only mortgage which was 97%. We bought in 2007 so completely the wrong time. I have tried to talk to the mortgage company about what happens if we sell at a loss. They won't comment and say we need independent advice.

I am looking at seeing a financial advisor but wondered if any of you knew what to expert from the money we would owe. Would they expect it back in one lump sum. We don't have any savings! Or would we be able to get a loan now we are no longer in the IVA. Can anyone recommend a place to get a loan from after an IVA or a financial advisor who specialised in people who have had IVAs.

Thanks for reading. Sorry it's a long one.
Dani
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Foggy
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by Foggy » Tue Mar 27, 2018 10:08 am
Have a word with Ryan and / or Shaun, who are both whole of market brokers with experience of adverse credit. Their details can be found here ( they are in yellow, towards the bottom of the listing): memberlist.php?mode=team

The mortgage lender will most likely want to see the full loan repaid before they will release their charge and allow the sale to proceed.
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dani233
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by dani233 » Tue Mar 27, 2018 10:18 am
That's what I thought. Thanks I will have a look.
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Lisa Thomas
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by Lisa Thomas » Tue Mar 27, 2018 11:16 am
This is slightly complicated as the shortfall may have been a contingent liability that will have fallen due under the IVA however in the past Banks have argued that continuation of payments to them or agreement of revised terms etc post IVA meant this was a new contract/debt and therefore the shortfall would not fall under the VA and would be a post VA/new debt to be dealt with.

I suggest you take advice from a specialist insolvency solicitor to see if they can argue with the Bank that the debt was dealt with under the IVA and is therefore not payable.

I can recommend someone if needed.
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dani233
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by dani233 » Tue Mar 27, 2018 12:04 pm
Thank you for that information. That's really interesting. We were told a couple of years into our IVA that the shortfall could possibly be taken into the IVA but would have extended our term by 24 months. We had already extended so chose to keep hold of the property and deal with it separately after the IVA. We have stayed with the same company and they are aware of the past IVA. We have since fixed the rate of our mortgage with them.

If you think we might have a case for the Mortgage loss been linked to the IVA, any recommendations for a solicitor to speak to would be welcomed. Thanks
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Lisa Thomas
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by Lisa Thomas » Tue Mar 27, 2018 1:34 pm
I wonder if extension/agreement of extended or new products would mean the debt falls outside of the IVA but worth investigation.

DM me if you would like a recommendation of a solicitor.
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dani233
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by dani233 » Tue Mar 27, 2018 5:05 pm
Lisa Thomas wrote:
I wonder if extension/agreement of extended or new products would mean the debt falls outside of the IVA but worth investigation.

DM me if you would like a recommendation of a solicitor.


Do I message you through the Neville website? Thanks for your help
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kallis3
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by kallis3 » Tue Mar 27, 2018 8:09 pm
It will be through her website.
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Lisa Thomas
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by Lisa Thomas » Wed Mar 28, 2018 8:18 am
I have received your e-mail this morning and replied.
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Shaun Vickery
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by Shaun Vickery » Thu Mar 29, 2018 11:19 am
If Lisa is able to achieve that for you it would be a great outcome. Failing that you are really looking at having to negotiate with the lender, there's not really any specific protocol in these matters.
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dani233
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by dani233 » Thu Mar 29, 2018 2:26 pm
Thanks for your advice everyone. I will speak to my mortgage company and see if they can give me more information.
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