Happy New Year first of all
We are due to start our final year of the iva from April 2014.We are slightly confused by the fact that we will either have to remortage or pay an extra year.Why?we have no desire to remortage and as there is already a remortage it would look doubtful (age is not on our side).Why as a homeowner do you get penltised for the extra when non-home owners dont.We have never caused any problems and never missed or asked for a payment break in fact we have toughed it out.We both feel really disheartend at the thought of this
Hi Deesey. This should have been explained at the outset and will be in the papers you signed.
You are asking creditors to give up money you owe them, it is only fair that they attempt to get back as much as possible. You owe money and have an asset which might help in the repayment. Those of us who don't own homes might have had to sell cars or any other valuable assets we might have owned and give that to the creditors.
Given your circumstances the most likely option will be the extra year ( if this is what is detailed in your proposal ) which is far better than remortgaging in any case.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Hi deesey
We had the re mortgage clause in our contract. In order for it to go through you need to have plenty of equity. I think the most you can borrow these days is 75% of the property value, you then take into consideration solicitors fees and what you owe on the house including second mortgages or secured loans. After adding up all the above you need to have about 10k left for it to be considered.If age is not on your side then you probably wont get a mortgage anyway.
Thank you both so very much for your help.I think weve already got our heads around the fact we will proberly have to pay the extra year as there isnt much equity on our home.At least we are on the right side of the tunnel now and we will be free of all our credit card debts.We entered into the iva because we had a choice and to us going bankrupt wasnt the way we wanted to go.We owed the money and wanted to repay it,it got a little bit confusing along the way.
We started with Blair Endersbury but got transfered to Grant Thorton.Maybe weve both been a bit stupid as neither has been in a situiation like this.We never understood when we had no arrears on any cards we were told to stop paying them stright away?????which put us stright into arrears
The small arrears that would have accrued just get absorbed into the IVA and are of little consequence in the scheme of things. The advice to stop paying them was to allow you some breathing space and to stop you potentially having to borrow more to pay bills and to live.
I think it might be worth having a word with Karol at GT to see if someone will have a quick chat with you about the equity clause. You can email Karol at IVACustomerServices@uk.gt.com putting only "IVA Forum" in the subject line.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I'm suprised that this issue is only now sinking in Deesey. This shoudo have been very clearly explained to you at the outset - as the concerns you are raising now should have been thoroughly discussed before you entered into the IVA.
Remortgages for people in IVAs are largely impossible now, so if you have equity in your property it is likely that an extension of a further year is the most likely option - but try and get this clarified by your current IP to be sure, so that there are no nasty suprises in the final year.
deesey - please email us as Foggy has suggested and we can discuss the re-mrtgage clause and your specific case with you.
I look forward to hearing from you.
