hi folks AHHHHH remortgages.

[jacqecc]

hi folks

AHHHHH remortgages. am having major problems getting rejection letter. we are in negative equity by at least 5,000 to 10,000. fill in forms but just get phonecall saying"no". nobody will put in writing say we have to go through process to generate letter but we cant go through process cause we are in an iva. must have gone through at least eight mortgage co's at mo.

got house valuation shortly and am at wits end with it. when we originally signed up four yrs ago we agreed 5 yrs with additional 6 months in lieu of equity,even then accuma knew was gonna be no equity at end. had variation mtg to reduce payments and agreed extra 6 months i.e 6 year iva. new co in feb this yr told us get valuation next yr now ive been told given wrong info and cause of original terms got to do it now - which ive done asked for secured loan and mgage statement ,been told that creditors can then ask for another 12 months - at mo due to finish march 13 - after having done 6 yrs!

if no equity can they ask us to do another twelve months - new company just say its up to creditors what they want to do. we are at wits end with this, stressed out and marriage is at breaking point cause of it. we were under impression finish march 13 - thought we were on last leg so to speak now to be told may have to do another twelve months- gonna go in a corner and cry/scream.

any advice would be appreciated.

thanks


jq

[kallis3]

Hi,

Sorry you are having so many problems at the moment. Exactly what does it say on your proposal about the equity release? If it says that you will just pay the extra 6 months then I would have thought that would have been it.

As regards the rejection letters, you will have to tell your IP that you are unable to get it in writing and see what they say. Which company are you with now?

Hopefully one of the experts will be on later to advise.

[Shining]

We read this so often on the forum about not being able to get rejection letters, I'm sure some IP's must be aware of this and sympathetic towards it.

Sometimes having the extra 12 months payments can be beneficial to us in terms of equity release.

Hope you get it sorted very soon x

[plasticdaft]

It really does seem a farce in todays climate to still force those in an iva to get rejection letters! There are no mortgage products for those in an iva and everyone and their dog knows this fact! The stress caused is totally unjustified!

Paul

[kallis3]

I can't see why on earth they can't provide either a rejection letter or an email. Wouldn't take too much to do that.

[plasticdaft]

No money involved unless they started charging a fee of course!

[olympic_torch]

Having just been through this process myself i fully sympathise. The only positive thing that came out of it was i found out how much my house is worth.
As for rejections, i did get a no letter from my current mortgage provider (c&g), and, after much searching around, after a tip found on here, i applied online at yorkshire bank and received an automated 'no' email.

[makingdo]

If Jacqecc is in negative equity, does that not mean automatically they can't get/doesn't have to apply for a remortgage?? And that the IVA will conclude when originally planned? Or have I misunderstood this part of IVA.

[Foggy]

It depends on the terms of the proposal as to how equity, or lack thereof, is treated, makingdo. Older proposals often insist on a given amount regardless of the equity situation, but these can generally be varied these days to bring them into accord with modern proposals.

[jacqecc]

hi

thanks for the replies. there was no amount given at the start of the iva just that we had to try and remortgage in fourth yr - which we are now finding out we cannot do.we initially agreed to pay 6 months in lieu of equity but new co GT say due to our reduction in payment mtg that bit was wiped out - shame nobody told us abt that bit!

i know we are to pay back our debtt or as much as poss, we will be paying back more % than the creditors originally agreed to and we are now doing 6 yrs rather than 5 1/2 as originally agreed but just cant understand why we may have to pay another twelve months when we are in negative equity - if we had equity then i would happily pay the extra 12 months but just feel this is so unfair.

due to parents health we need to move as soon as we can possibly do to be nearer them after we are out of iva - my dad had quad heart bypass, now got to have pacemaker and has other serious health issues, mothers walking is getting steadily worse and if we have to pay another 12 months gonna delay it even further.

im seriously stressed out over this and its driving us mad, got hse valuation next wk, as soon as get letter gonna post to grant thornton , try and get a quick date for mtg they need to have with creditors and plead with them - on bended knees if needed - to try and get this sorted to finish march 13.

thanks everyone


jq

[Shining]

Hope it works out for you jacqecc, let us know how you get on x

[kallis3]

I do hope you get this sorted. I know what you mean with your parents and ill health, my father has been in hospital this week and neither of them are good on their legs anymore. It's a worry.

[Broke of London]

It is unusual but not unheard of to continue for 12 months when there is no equity to address. One proposal called it a "goodwill gesture". Get a copy of the variation meeting paperwork and read it with your proposal to see whether you are required to pay 12 months in lieu of equity when there is no equity...or if there is any other provision for a 12 month extension. Hope this all ends as scheduled xx

[Foggy]

If all else fails you are entitled to ask your IP to call a variation meeting to tell the creditors there is no equity to address and, in light of the fact that you have exceeded the original dividend forecast, and your parents health issues needing your full attention, to ask that the IVA ends on the anticipated end date with no extension.