Hi
We have just completed our 60th payment to DFD,
we were told 5 months ago that we needed to pay a
61st to complete the IVA. However this week we had a very curt unsigned letter saying we, (DFD) believe there may be equity in our house and
we needed to sell, to release equity or carry on for yet another 12 months. The house is in need of a total makeover as we have done nothing much to upgrade owing to DFD taking almost £50000 from us in 5 years. we are both pensioners, I am 69 and have for the last 6 years been cleaning lavatories on a night shift, to fund the DFD coffers! I was told these companies make an average of £5000 from people like us. We have been told to put the house up for sale by Halifax, as our interest only mortgage has come to an end.
Any advise folks?
Apologies for the delay in responding,I've been catching up with my sleep!
I'm not disputing the fact that I could have been expected to sell the house at the end of the IVA, it's just the manner in which they have gone about it. We have been told our interest only mortgage has been extended until August, in the meantime we must put the property on the market. I am finishing work this year, both my wife & I have had serious
health problems, this would mean a drop of over 40% in our income, there would just be pensions. Obviously the house is not in the best of conditions and will not reach anywhere near it's true value. If we sell and, just for example make £10000 in equity, would DFD take all of this? Would we be able to deduct the fees, solicitors and the like, needed to sell?
Thanks in advance.
You need to speak to DFD and Judith from DFD posts here. The sale is nothing to do with the IVA but creditors may allow you to retain money for rent etc. The costs of the sale will be paid from the sale proceeds.
It does seem as if they could have done more to explain their position to you, but from what you are saying the mortgage company are driving this in any case, as you appear to be at the end of an interest only mortgage with no method of repayment?
If you have to therefore sell your property due to that, the required element can be paid into the IVA once the sale has been effected. How much is the property worth, and how much do you currently owe on the mortgage?
It certainly sounds as though it's Halifax who are pushing for you to sell the house because your interest only mortgage has come to an end. I'm afraid it's an increasing problem with people who have taken interest only mortgages but have no means of repaying the capital at the end of the term. Obviously this does also have implications in terms of your IVA but from what you say it sounds as though you may struggle to maintain your mortgage payments anyway, even if it were to be extended again?
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Thank you to everyone who has responded to my post and apologies for the delay in responding.
In reply to Melanie, according to a Postcode valuation, it's approx. £280000, however over the last 6 years or so, little or no upgrade/repairs have been carried out. That said I guess we're still looking at a sizeable profit on the £143000 mortgage and secured loan of £34000.
Our worry is how much, if any of the proceeds will be left for us, we have no savings and when I finish full-time work this year, there will only be our 4 pensions, around £2500 net per month. We are seriously concerned about the future.
Thanks for listening.
Unfortunately, no-one can guarantee what your property can be sold for, but the market is showing some signs of improvement, and hopefully you will be allowed sufficient time to get the best price for it.
Thank you for your reply Melanie. We're not so concerned about making more profit, just like to know what percentage, if any, will we be allowed?
Thanks.
Unless the terms of your IVAs specify you being able to retain funds out of the sale proceeds, this is probably best dealt with by determining how much you need to retain and then seeking creditor agreement by way of a variation.
Some IVAs allow you to retain a 15% equity share in your property so your IP should be able to help. If in doubt seek legal advice as a lot of money is potentially at stake.
