www.iva.co.uk

Please can you advise? I asked my IP around early December for help with sorting out a F&F figure. They are taking forever. They asked me the following question today as well, but the guy is on holiday and they have only discussed this by email. Sounds like they aren’t interested in helping now they have us.

Question:

Furthermore, how much would you estimate your property to be worth now and what’s the mortgage stand at?

If the equity remains approximately the same I will also need a brief explanation of what you would propose to do with the money you would not need/be able to offer to your creditors. Ie if equity is £24,000 approx and we meet the 50% requirement along with a further 25% compensatory element for offering a variation, what would you do with the other 25%?

Is this really relevant? I’m feel totally un-equipped to deal with this at the moment as everything is in there court and I’m just waiting all the time. I’m worried about what fees they will take for themselves etc and could do with some advice on how to deal with this.

We are struggling as well as I’m now paying childcare £360 and a mortgage increase of £280 out of what we have a month. The mortgage increase is due to coming out of a good fixed rate. We have had no annual review either. I’m not re-doing the mortgage until I have the F&F figure to potentially borrow against the house...so I’m stuck between a rock and a hard place with no welly to get them moving!!

Any advice would be great around the process etc.

Thanks...a stressed out Needarise [V]

As you think you are getting nowhere doing it this way, how about making an offer instead.
This is what we did. We had a mortgage broker get us a deal based on what we could afford. We wrote in with the offer and the solicitors kept the remortgage on hold untill the variation meeting and the offer was accepted. We then rang the solicitors and broker and asked them to complete the remortgage and release the funds.

Maybe thats worth a try??

I originally said we could probably borrow 20k but thought they had to do it all on our behalf?

Can I write a letter to the IP stating what we can afford and go with that? How about the creditors bit? I need them to do that dont I?

Thanks for your response, I take it you managed to pay yours off then [:)]

I am not sure I understand where you IP is coming from here, so can you clarify the exact requirements under the terms of your IVA with regard to the property? Is there a requirement for a fourth or final year revaluation, in which case a current valuation of the property and a mortgage redemption statement will be required.

Using a remortgage as an early exit route can be a bit tricky as, to an extent, all bets are off.

You don't say how long you've been in your IVA - that can be a relevant factor.

To look at the big picture, when you went into the IVA you made representations to the creditors that you could pay £x per month and release equity of £y. However, you are now saying something different i.e you can't really afford to continue making the contributions but propose to realise equity to close it off early. I think the Supervisor is really only asking the questions that the creditors will ask when considering the necessary variation to the proposal which, I imagine, will show a reduction in dividend when compared to the proposal?

It is fair to say that when a variation is put forward, if the Supervisor can actively recommend it to the creditors it can mean the difference between acceptance and rejection. I don't read anything into the e-mail you have received from the Supervisor other than a request for info to enable him to "sell" the variation.

A couple of questions emerge:

1. Is the IVA just for you or for your partner as well?
2. Have you actually got a mortgage offer?
3. Is the £24k referred to the total equity in the property or the amount you are able to actually raise i.e is it your intention to keep back £6k in cash?

Ian

Our circumstances have changed since being in the IVA.I had a baby in May thats added to our outgoings as I couldn't possibly have given up work to look after him whilst in the IVA Ive been in it for 18months.

Ive paid about 8.5k off at 440 a month, the agreement was that afer 4 years 12.5k equity from our house goes in. Ive got equity in my house as we bought it from my partners parents at a reduced price. The house has also gone up in value. So we have 147k left on our mortgage its worth 174.5k and my mortgage lender has provisionally agreed to lend 20k to pay the IVA off. I have been completly honest with them why I want the money. Im not planning on keeping any money for anything just borrowing what I need to clear the F&F....if only they would give me a figure to work with!!

This is joint with my partner. Hope this covers it all.