how can i deal with the mortgage shortfall

[MelanieGiles]

With a mortgage shortfall of £50k, and other debts of approximately £7k, it will take you approximately 8 years to pay off the debts, assuming that creditors will not charge you any ongoing interest, which cannot be guaranteed.

An IVA ought to last for 5 years only, but you will need to get the support of the major creditor, and as you are going to be required to raise equity during the final year you may find that you end up paying creditors in full - depending upon the value of your property in the final year and your ability to raise additional funding.

I suggest that you now take advise directly from an insolvency practitioner, who will be able to explain all of the options you currently have available and discuss an appropriate way forward.

[markb]

Thanks for your advice, any recommendations on IP'S would be a great help.

[facingittogether]

hi

i really hope you can get things sorted as i realise how worried you must be right now!

from personal experience i can recommend melanie giles and her team, they held our hands all the way through our problems and i could not fault them!

good luck and let us know how you get on!

love barb x

[angelrainbow]

Just to let you know that our mortgage shortfall is included in our IVA and the amount still isn't known for certain..the IVA was worded in such a way as to estimate the shortfall with a provision for an actual figure to be incorporated once it was known.

The bulk of our debt was the mortgage arrears and secured loan. Unsecured lending was relatively minimal..without the 'secure' elements we would never have qualified for an IVA.

We would probbaly have been better off going bankrupt and were advised to do so by our IP, but we didn't want to go down this road.

[markb]

Just to let you know that our mortgage shortfall is included in our IVA and the amount still isn't known for certain..the IVA was worded in such a way as to estimate the shortfall with a provision for an actual figure to be incorporated once it was known.

The bulk of our debt was the mortgage arrears and secured loan. Unsecured lending was relatively minimal..without the 'secure' elements we would never have qualified for an IVA.

We would probbaly have been better off going bankrupt and were advised to do so by our IP, but we didn't want to go down this road.

Thanks for the information, if you dont mind me asking who did you use for your IVA, I would really like to start getting the ball rolling to deal with this situation. Thanks again

[David Mond]

Visit www.iva.com and see reviews on IP's.Speak to one or two. Good luck

[kallis3]

Melanie Giles comes highly recommended by a lot of posters on here. Her details can be found on the experts page, or on her posts on here.

You could do worse than give her a ring.

[markb]

Thank you I think I will call her,

I again made calls to the mortgage lender to discuss if they would accept lower monthly payments or allow me to sell the property, and again I was told that the department that deals would not take my call, as I had not gone into arrears as yet! I dont understand why they wont assist me until I owe more money than I could ever repay, its so frustrating!

That being said I do appreciate all the comments and advise I have received from you all.

Thanks

[angelrainbow]

Mark, I am with Blair Endersby and have found them excellent throughout.

[David Mond]

Who is your Mortgage lender?

[markb]

Thanks for the details, I will get in contact with them also!

My mortgage lender for the problem property is DB Mortgages part of Deutsche Bank apparently.

[David Mond]

Will try and find out something from a contact and get back here to you

[markb]

Thank you David I appreciate it.

One thing I did think of was just handing the keys in and waiting to hear about the shortfall, and then cross the shortfall bridge as and when it occurs? that way I can see if an IVA or Debt Management plan are my best options or try to make a lump sum settlement.

[MelanieGiles]

If you cannot pay this mortgage, it would be a better option to voluntarily surrender the property, to avoid the costs of possession which will ultimately be charged to you.

[David Mond]

Melanie is right - my contact has not come back to me yet by the way.