www.iva.co.uk

Hello everyone. I've asked for some advice on here before-and got some good advice. So here i am again, with another query!I have a mortgage shortfall of 32k, and some credit cards totalling about 15k.Im thinking of doing an iva. But i thought i would try to get the mortgage shortfall halved, as i'd been advised to do, so that the debt wouldnt be so much.I wrote a letter to the building society of whom the mortgage was with, and i got a reply from 'enact'-im guessing this company is dealing with the mortgage shortfall debt now?! They have agreed to halve the debt to 50%- so would be 16k. But they want me to fill in forms about my expenditure and outgoings,aswell. However if im going to do an IVA. Do i need to do this? And could they change thier mind to halve the debt, if they know im entering into an IVA?

Assumedly they will only halve the debt if you can pay it now?

Do you have 16k available? If not, then it may be best to get specialist advice first before you jump one way or the other.

Regards.

Hi,

I have no idea about this and haven't read about this happening before. Sounds a bit dodgy to me to be honest. I wonder if this firm that have written to you are legit? Are you actually in arrears with your mortgage?

I would take some professional advice via www.iva.com - give one or two a ring for some free advice.

I put together IVAs where people have large mortgage shortfalls pretty much every week, and you can be sure that the offer of reducing the loan would only be available if you had the cash to pay it. If you are going to go into an IVA, the effect of a reduced loan may make no difference, so it would be better to take professional advice now to see what options there are available to you.

Hello, take advice from a professional. The only advice I have is its best to share it all with a professional ip and see what they say rather than worry and deal with it yourself . Takes the guess work out of it and halves the worry ...good luck

Hope you get all the info you need on this Debbie and good luck. best wishes
Oscar
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Hi Debbie

I agree with what has already been said on this. The deal offered will only stand if you can pay the remaining 50% of your shortfall debt in a lump sum. If you are considering an IVA there is really very little mileage in trying to do this sort of deal before you start. Why not just propose the IVA straight away? In my experience the mortgage company will agree and as your largest single creditor, your IVA will be accepted no problem.

Hi Debbie - welcome back!

Creditors will want the full balance to be registered as the debt owing if you are doing an IVA as they know they will only come out with a % being paid anyway.

If you have a lump sum to settle the reduced shortfall now then you still need to get professional help now on how best to use it. If you merely use it to clear the shortfall you'll still be left with the other debts whereas you could use it as a full and final settlement to cover all the debts.

Either way, best to speak to a couple of professionals to go over the picture as a whole and see what is your best way forward all round.

Regards,