Hi I am in my final year of my IVA

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rachael.fs
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by rachael.fs » Mon Jan 25, 2010 10:16 am
Hi
I am in my final year of my IVA and have been asked to reakise the equity in my home to satisfy the outstanding debt.I cannot afford a remortgage so have decided to sell my home.Is it true that I only have to pay 75% of the equity to my creditors?
Does this mean I am able to keep the remaining 25%? I agreed to 100p in the £ at the beginning.Also I am considering using a quick sale company who will only pay 85% of te value.
Please advise as I am going grey"ier" by the day.
Regards

 

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Shining
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by Shining » Mon Jan 25, 2010 10:21 am
Hi rachael and welcome to the forum, if you were going to pay 100p to the £ by selling your house will you have met with this figure?

I'm not sure of a 'certain' answer and am sure a professional will be along soon to give advise.

 

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rachael.fs
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by rachael.fs » Mon Jan 25, 2010 10:36 am
Hi
My house has lost equity and is valued less than it was 5 years ago.
I have paid £12000 already and still owe £46,000.
I have read some where that the max the creditors can ask for is 75% of the equity.I obvously have to start again with renting so would need the 25% , if allowed, to do this.
This will not pay the outstanding debt.
Cheers
Rachael

 

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Michael Peoples
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by Michael Peoples » Mon Jan 25, 2010 11:33 am
Hi Rachael and welcome from me too.
This will require a variation and permission from creditors. Speak to your IP and explain what you will need to keep after the sale. For example if your credit file is impaired you could need up to six months of a bond should you rent and there will also be removal expenses. It does not really go down to percentages but creditors will normally allow reasonable expenses from a sale.

Depending on the level of equity have you considered a sixth year extension and try and keep the property?

 

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rachael.fs
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by rachael.fs » Mon Jan 25, 2010 11:47 am
Hi Michael

Thank you for your response. I am set on selling as I have had 5 years of the IVA and really just want to start again.Paying the monthly agreement(12,000) has nt reduced my debt at all - has all gone on admin fees etc so really dont want to continue lining the pocket of my IP.
I have been considering using one of the quick buy services but they will only pay 85% of the house value.
Is 75% of the equity a reasonable offer ? Or will I need to detail all te expenses incurred with the house sale like 6 months bond etc,
Thanks again
Rachael

 

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Michael Peoples
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by Michael Peoples » Mon Jan 25, 2010 11:55 am
It would be better to itemise your needs and it could be you need more than 75% of the equity. Furthermore, you could try and sell the property on the open market which would achieve a higher return and creditors may allow you to keep more of the sale proceeds. If the property does not sell within a specified time you could put it to auction or use a quick buy firm. You should contact your IP and discuss all the options but I think a one year extension would be the best option for you if creditors agreed. You could then sell after the IVA was over if you still wanted to and have all the equity from the property.

 

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Max
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by Max » Mon Jan 25, 2010 11:59 am
Michael, I must not hog this post but you may remember a few months ago you gave me some advice to pass onto a samaritan client whose family is in the south of Ireland but he lives here fpor the moment. He telephoned the Samaritans last night and left a message for me to thank the person who advised me as to what to tell him - he took your advice and it has worked. Thanks!

 

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rachael.fs
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by rachael.fs » Mon Jan 25, 2010 12:03 pm
Hi Michael

I understand that the open market would achieve a higher price but it also means that I have to pay solictors fees , estate agent fees,HIP and I just do not have the spare income needed to pay these.
If I entered into a sixth year, I would still need to sell to pay off the outstanding IVA after the year as well as a further £2400(£200pm) to my IP wouldnt I ?
Cheers
Rachael

 

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Michael Peoples
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by Michael Peoples » Mon Jan 25, 2010 12:04 pm
Glad to hear it Max. It is nice to know when advice works for people and I am delighted I could help.

 

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MelanieGiles
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by MelanieGiles » Mon Jan 25, 2010 1:48 pm
Rachel

Do be careful about selling your property in the manner you suggest. I undertand that you want the IVA done and dusted, but do think about the future as well.

A good IP would put forward a variation for you probably enabling you a realistic time to sell, and potentially allow you to retain some money for relocation costs. And a lot of IVA proposals provide for the additional year's contributions to be in lieu of equity release - so you might find that if you pay the additional sums you will not have to raise equity at all.

Get some advice from your IP, who ought to be helping you with this matter.

 

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rachael.fs
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by rachael.fs » Mon Jan 25, 2010 2:14 pm
Hi Melanie

Thanks for your advice- I shall contact my IP and find out whether the year extension will be enough to satisfy the creditors.
I have checked the paperwork and all it says is that an additional 12 months can be added?
Thanks for your help
Rachael

 

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Michael Peoples
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by Michael Peoples » Mon Jan 25, 2010 2:28 pm
Best of luck Rachael. Hopefully the extension is accepted because at least you can remain in your property. While you would have to pay an extra 12 months your mortgage will not have to be increased which will leave you better off in the long run.

 

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kallis3
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by kallis3 » Mon Jan 25, 2010 6:14 pm
Good luck Rachael.

 

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rachael.fs
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by rachael.fs » Mon Jan 25, 2010 6:28 pm
Thank you and I will keep you posted !!
Talking to my IP tom!!
Fingers crossed!!
Regards
Rachael

 

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orange
Posts: 1183
by orange » Mon Jan 25, 2010 7:01 pm
we had an equity clause .so had our house valued and came in under the mortgage.so went for a final year.good luck
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