how can i deal with the mortgage shortfall

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MelanieGiles

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Post by MelanieGiles » Tue Oct 21, 2008 9:45 am
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.
Regards, Melanie Giles, Insolvency Practitioner
 
 

markb

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Post by markb » Tue Oct 21, 2008 10:30 am
Thanks for your advice, any recommendations on IP'S would be a great help.
 
 

facingittogether

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Post by facingittogether » Tue Oct 21, 2008 12:56 pm
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
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angelrainbow

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Post by angelrainbow » Tue Oct 21, 2008 3:22 pm
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.
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markb

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Post by markb » Tue Oct 21, 2008 3:31 pm
angelrainbow wrote:

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

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Post by David Mond » Tue Oct 21, 2008 3:36 pm
Visit www.iva.com and see reviews on IP's.Speak to one or two. Good luck
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
 
 

kallis3

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Post by kallis3 » Tue Oct 21, 2008 3:37 pm
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.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
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markb

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Post by markb » Tue Oct 21, 2008 3:57 pm
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

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Post by angelrainbow » Tue Oct 21, 2008 6:09 pm
Mark, I am with Blair Endersby and have found them excellent throughout.
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David Mond

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Post by David Mond » Tue Oct 21, 2008 6:13 pm
Who is your Mortgage lender?
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
 
 

markb

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Post by markb » Tue Oct 21, 2008 6:25 pm
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

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Post by David Mond » Tue Oct 21, 2008 8:03 pm
Will try and find out something from a contact and get back here to you
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
 
 

markb

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Post by markb » Wed Oct 22, 2008 8:56 am
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

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Post by MelanieGiles » Wed Oct 22, 2008 10:16 am
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.
Regards, Melanie Giles, Insolvency Practitioner
 
 

David Mond

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Post by David Mond » Thu Oct 23, 2008 12:54 am
Melanie is right - my contact has not come back to me yet by the way.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
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