www.iva.co.uk

We met with the bank today and they are deciding whether to force the sale of our house or add on default charges as we had debts when we took out the mortgage, which we didnt declare, therefore even though we have never missed a payment we are in breach of contract. If they force the sale does anyone know of compainies who will remortgage before our iva starts (creditors meeting this friday). We are going out of our mind that we will lose the house any suggestions would be much appreciated.

I think that you will find it very difficult to remortgage, as presumably you are in arrears with your current mortgage payments hence the bank's position.

Was your IP aware of this when they were drafting the proposals, and have you tried to come to some arrangement with the mortgage company to pay the arrears off over an extended period of time?

Hi, we have never missed a mortgage payment but they are saying we are in breach of contract as we didn't declare any of our debts when we took the mortgage out, we are hoping to enter the iva on friday (creditors meeting)is there any chance of remortgaging before it begins, we have missed 2 loan payments now.

Sorry, by the way I am J.4, couldn't remember my password so had to re-register!

Surely this is a bit ridiculous of the company as they would not have given a mortgage without making a credit check. A mortgage company can't repossess a house without the judgment of the county court. You haven't missed a payment. Liase with your IP, the IVA helps the mortgage company by lowering your repayments to your unsecured debts.

Is that absolutely definate that they need the courts judgement, I'm sure a court wouln't rule for repossession if were not in arrears dont you think, or am i just kidding myself.

The repossession isn't over arrears it is to do with you lying and invalidating the contract between you and the mortgage co. So I don't think the question of arrears comes into it. The contract is no longer valid so they want to withdraw the mortgage. Hopefully they will come to a compromise with you as it is harsh for yu to lose your home over a silly error of judgement.

Was there a mortgage broker involved in securing this mortgage for you? And were you asked to list out other debts in the application?

Hi, there wasn't a broker involved but we were asked if we had any outstanding debts, we didnt disclose them as they were all being comfortably met and knew they wouldnt affect the mortgage payment. To this day they haven't affected the mortgage and we have never missed a payment. We realise now this was the wrong thing to do and should have been honest from the outset.

I guess that is not the point. If you were required to disclose your debts, and didn't, then the mortgage company are probably well within their rights to take the action they are doing. How a Court will view their application, will be very interesting to monitor - as if you are managing the repayments I cannot see a possession order being granted.