Selling my home

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Iwanttobreakfree
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by Iwanttobreakfree » Sat Oct 13, 2018 8:43 pm
Hi,

I originally posted about selling and the fees involved from the IVA side of things.

I have let abit time elapse and have decided to definitely sell my home and have indeed sold my home (or accepted an offer at least).

The accepted offer would see me cover my full and final 100% figure + leave me with a healthy (in my case) amount for future security.

I will be moving into my partners home and so do not need to worry about the appalling credit file I now have for the immediate future.

My questions now are, does anyone know how long things can take with regards to solicitors and sorting the IVA side of things within the conveyancing of my property.

Since an offer has been accepted and would cover 100% do the IPs need to still schedule a variation meeting (3months average arrangement time?) or would it just be a case of lifting the land registry restriction when it was time to exchange monies.

I obviously don’t want anything to put my buyer off going ahead with the sale.

Any help is very much appreciated and sorry if I have been vague in any way. Happy to clarify and give more details but I’m in such a good place seems too good to be true.

Thanks
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Foggy
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by Foggy » Sun Oct 14, 2018 8:34 am
Your conveyancer will need to liase with your IP and your IP should agree to lift the restriction on an exhange of undertakings (professional and binding "promises" ). Your conveyancer will undertake to forward the sale proceeds to your IP in exchange for the IP's undertaking to lift the restriction on sale. This is assuming that your potential buyers don't run for the hills on seeing the restriction in the first place. I do not wish to rain on your parade but that is a possibility.

The IP shouldn't need to seek a variation because the sale of an asset would be already embedded in the agreement. It could take up to 6 months, however, from the sale completion to the IVA being closed and you getting the balance of the monies back.

As you have just gone ahead and "sold" without any prior agreement or arrangement with your IP and creditors they will seek to recover the balance of the full original debt plus fees and possible statutory interest --- an expensive way to settle an IVA early and incorporate a house sale.
Iwanttobreakfree
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by Iwanttobreakfree » Sun Oct 14, 2018 1:27 pm
Foggy wrote:
Your conveyancer will need to liase with your IP and your IP should agree to lift the restriction on an exhange of undertakings (professional and binding "promises" ). Your conveyancer will undertake to forward the sale proceeds to your IP in exchange for the IP's undertaking to lift the restriction on sale. This is assuming that your potential buyers don't run for the hills on seeing the restriction in the first place. I do not wish to rain on your parade but that is a possibility.

The IP shouldn't need to seek a variation because the sale of an asset would be already embedded in the agreement. It could take up to 6 months, however, from the sale completion to the IVA being closed and you getting the balance of the monies back.

As you have just gone ahead and "sold" without any prior agreement or arrangement with your IP and creditors they will seek to recover the balance of the full original debt plus fees and possible statutory interest --- an expensive way to settle an IVA early and incorporate a house sale.


Thank you so much for your reply it is massively appreciated.

I know I am wary that it could ‘scare’ the buyer off, fingers crossed it doesn’t.

So payplan were aware I was going to sell and told me to get in touch when the house had been sold and then they would act and give me a 100% figure etc. They said the creditors would not agree to a full and final offer and so did not undertake a variation meeting if I was to sell the home as there was enough equity to cover the 100% figure.

Yes unfortunately I was not aware the full amount of fees would be also be added onto any settlement naively thought it would be a pro rata rate. So it is indeed an expensive way to do things but to have the weight lifted would be great.
Six months after will be fine to be free of the IVA label, but one more question on monies exchanged....”you getting the balance of the monies back” The IP will want ALL of the remaining balance after mortgage is settled and then divvy it out to creditors and myself?

I thought, again not knowing, that my conveyancer would send the balance of the 100% settlement to the IP and then keep the rest of my equity to forward to me?

Sorry if I’m confused.

Thanks again :)
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Foggy
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by Foggy » Sun Oct 14, 2018 1:58 pm
It is not Payplan's place to say what the creditors would or would not accept ... but, the creditors would give weigth on the IP's recommendation, which would probably not been on your side. I have seen F&Fs accepted with more equity potential. After all ... if you didn't sell and let the IVA run its course they might only have got 12 months extra payments anyway!

As regards the proceeds --- I have seen it handled both ways. It is usually down to how the IP wants to do it. The completion date doesn't arrive unexpectedly and it is quite feasible for the IP to give your conveyancer a set settlement amount to be paid over to them on the day of completion, in the same way as mortgage repayments are dealt with. But some IP's claim this isn't possible and require the whole of the sale proceeds be paid to them for distribution with the excess being repaid to you in due course. I would ask your conveyancer to propose undertakings to handle it the first way.
Iwanttobreakfree
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by Iwanttobreakfree » Sun Oct 14, 2018 3:02 pm
Foggy wrote:
It is not Payplan's place to say what the creditors would or would not accept ... but, the creditors would give weigth on the IP's recommendation, which would probably not been on your side. I have seen F&Fs accepted with more equity potential. After all ... if you didn't sell and let the IVA run its course they might only have got 12 months extra payments anyway!

As regards the proceeds --- I have seen it handled both ways. It is usually down to how the IP wants to do it. The completion date doesn't arrive unexpectedly and it is quite feasible for the IP to give your conveyancer a set settlement amount to be paid over to them on the day of completion, in the same way as mortgage repayments are dealt with. But some IP's claim this isn't possible and require the whole of the sale proceeds be paid to them for distribution with the excess being repaid to you in due course. I would ask your conveyancer to propose undertakings to handle it the first way.


Thank you very much, you’ve been very helpful :)
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Lisa Thomas
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by Lisa Thomas » Mon Oct 15, 2018 8:44 am
If the variation meeting hasn't been called yet then your F&F offer has presumably not been accepted by creditors?

Is the '100%' figure based on what you would pay in contributions if the IVA continued in the normal ay to a successful end or is it based on a 'settlement' figure that includes the total debts and interest and costs in full (less IVA realisations to date)?
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Shaun Vickery
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by Shaun Vickery » Mon Oct 15, 2018 10:58 am
Alternatively you could consider raising funds against the house in order to offer an amount your creditors in 'Full and Final settlement' which could be significantly less than settling in full. This would then leave you free and clear to sell the house, at which point you would settle the finance. We've done this numerous times for clients (including where Payplan is the IP). As Foggy says, it is entirely your prerogative if you wish to put an offer to your creditors, although your IP may not be totally supportive. Of course this can take time to resolve and whether your buyer is prepared to wait is another question. You would need to be prepared to be a little forceful where necessary.
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