Only 3 payments to go

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poppy13
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by poppy13 » Fri Jun 30, 2017 6:48 pm
But my job goes at the end of august. I will be able to complete the payments but can't then afford my mortgage. Can I put the house up for sale once the final payment is made, or do I have to wait. I need to move as I need sheltered accommodation having had two strokes at the start of the year. Is there any way I can pay the final 3 payments early so I can put the house up for sale? Or do I need to wait for the completion cert which my mortgage company will not like.
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Foggy
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by Foggy » Fri Jun 30, 2017 7:24 pm
Paying the final three payments early will not really save any itime at this stage as they will wait until the contractual end point before formally closing the IVA. Has the equity position been examined and dealt with ? If so you might be able to get an agreement with your IP regarding getting a house sale moving -- but do get anything in writing. In reality the completion of the IVA would be likely to happen before a house sale completed anyway.
poppy13
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by poppy13 » Fri Jun 30, 2017 9:06 pm
The final 3 payments are the 12 months additional, added to the IVA in lieu of not remortgaging. Therefore can the Practitioner take any more of the equity if I sell? The IVA has been running since May 2010 and seems never ending. I want to finish it but do not want to jeopardise it at the final hurdle. I just need to know what is feasible?
Reading elsewhere on the forum it seems if I ask my IP to remove the restriction once I have made the final payment they could do so, is this correct? Or am I liable to pay monies from the sale into the IVA even if they are needed for future purchase. Because of my poor health I need to move closer to family and friends who could help me
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linrog
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by linrog » Sat Jul 01, 2017 5:42 am
once you have your completion certificate you are free to do as you like with your house until then im afraid if you sell any monies will need to be paid into your iva pot
poppy13
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by poppy13 » Sat Jul 01, 2017 7:08 am
Hi Linrog, I don't understand your reply. My final payments include an additional year in lieu of not being able to remortgage. If my equity were then paid into the IVA it would have been taken into account twice, which surely is not correct. As I will have no income after the final payment other than a small pension, I need something to live on! By September I will have paid just over £101k into the IVA (plus £20k plus of reclaimed PPI) against an original debt of £106k, of which a significant amount will have gone into fees. I know interest would have accrued on the original debt but I think I have tried to pay back as much as possible. Is it possible to get an informed view from one of the IPs on the forum? Many thanks.
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kallis3
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by kallis3 » Sat Jul 01, 2017 7:52 am
You can always explain your position to your IP and ask if you would be allowed to sell your house now without losing any money - it has been known for the restriction being lifted before the IVA finishes.

Give them a call on Monday.
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Foggy
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by Foggy » Sat Jul 01, 2017 8:46 am
poppy13 wrote:
Hi Linrog, I don't understand your reply. My final payments include an additional year in lieu of not being able to remortgage. If my equity were then paid into the IVA it would have been taken into account twice, which surely is not correct. As I will have no income after the final payment other than a small pension, I need something to live on! By September I will have paid just over £101k into the IVA (plus £20k plus of reclaimed PPI) against an original debt of £106k, of which a significant amount will have gone into fees. I know interest would have accrued on the original debt but I think I have tried to pay back as much as possible. Is it possible to get an informed view from one of the IPs on the forum? Many thanks.


Poppy -- Linrog is correct in that, if you sell whilst still in the IVA, with no agreement otherwise from your IP, the creditors could demand the proceeds. The object of the 12 month extension was because you could not release equity on the property. If you turn around and then DO release the equity by selling they could say that you could have done that instead of the extension! You have to look at it from their point of view -- they are losing a lot of money and, so, might object if you come out "on top". The equity will not have, as you say, "been taken into account twice", as the 12 months extension is likely to be far less than the amount of equity available, so the creditors have accepted a token 12 months instead.

Now, getting agreement to sell and then the actual process of selling would probably take longer than you have left on the IVA anyway! So it might be just as well to sit it out.
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Michael Peoples
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by Michael Peoples » Mon Jul 03, 2017 7:49 am
Your IP may be happy to accept the final payments early and close the case down. Explain to them that you will be losing your job and want to get the IVA finished before you decide what to do afterwards. Seems fair to me as creditors are getting what they agreed with the extension.
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Lisa Thomas
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by Lisa Thomas » Tue Jul 04, 2017 3:54 pm
I agree - either ask to waive the last payment/s once you have confirmation of redundancy or ask for a break.
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