First Plus

[YummyMummy]

Hi,

I wonder if anybody could help me. I am in the process of selling my house, we have been offered £93,500. But we will be about £18,000 in shortfall to First Plus. If they agree to the sale I know that I can add some of this debt into my IVA. My ex-partner would also be liable and he is also in an IVA. Just looking through some paperwork as we are 2-3 months behind with the mortgage. I have got PPI on the First Plus loan, could I cancel this so the total amount could reduce slightly? I don't want to sound cheeky but I am trying to reduce the shortfall as much as possible so I am not going to have more to pay back. Also my ex-partner is all over with his IVA and he told me tonight that he has not paid anything for 2 months, he said he is going to go bankrupt. Where will this leave me with the shortfall mortgage, will I have to pay all that back myself?

Any advice would be gratefully received.

[:)] Still smiling......just!

[luluj]

I would seek specific advice from your IP on this ...difficult to offer case specific advise without knowing all of the facts on your proposal etc.
It does sound a good idea to me ...but that is just my opinion.

[Anna.da]

Hi Yummy Mummy, sorry to be negative, but we were in a smiliar position with first plus prior to starting our IVA. We accepted an offer on our house only to find first plus would not allow the sale due to a short fall owed to them. We ended up handing the keys back to the mortgage company. Have you completed a short fall application? i would do this asap and chase them everyday as they took ages to process ours and the buyer dropped out in the end. Obviously i don't know your situation so they may view things differently in your case but just thought i would let you know. really hope it all get sorted quickly for you.

[YummyMummy]

Thanks, if you don't mind me asking how much money did you lose and did you include this into your IVA?

[Anna.da]

The short fall would have been £18,000 but we ended up owing them around £25,000 and a further £10,000 to our mortgage company (this would have been paid off if first plus had allowed the sale) with handing the keys back it took about 10 months for the house to sell so we were 10 months in arrears with loan and mortgage plus all the other fees added on. Also the house sold for £10,000 less than we had sold it for. It was all included in the IVA which we started as soon as the house sold. Are you already in an IVA or are you looking at applying for one?

[YummyMummy]

Hi, thanks for that information, I know it sounds stupid but if helps when other people have gone through it because it is quite scary and it is good to get the advice. I have been in my IVA for the past 2 and a bit years. They are being split at the moment from my ex. I will contact First Plus again but I can see there being problems!!!! Whatever happens, happens it is beyond my control but it is quite scary. I came back from work yesterday to find a man from Barclays sat outside my door, wanting to go through some paperwork cos we have not paid the mortgage. He did not leave until 7.30 pm, it really was not very nice. I think there is a light at the end of the tunnel........ somewhere! I am just really hoping it does not affect my IVA with Grant Thornton too much, I have been quite happy in my IVA knowing I am getting myself sorted and trying to pay back as much as I can, the last thing I want to do is go bankrupt.

[Anna.da]

i know what you mean, i felt really alone when dealing with all our debt, family and friends didn't know the extent of our debts and hubby just thought if he ignored it all it would go away!

If you are already in an IVA i would think it would be in first plus interest to let you sell the house, as if you decided to hand the keys back they will get less back and end up as part of the IVA sharing your repayments with other creditors. But thats just my thoughts! First plus never agreed with me!!

They just kept telling us to keep the house even though we had already moved out and there was no way we could do that.

Now its all sorted i can see i really shouldn't have worried like i did as it all got sorted in the end.

I would keep Grant Thornton updated and ask them for advice. We were with a fantastic debt management company at the time, and they gave great advice and guided us throughout, i don't know what i would have done otherwise!