Posted: Mon Oct 27, 2008 6:32 am
Hello,
can anyone advise me please?
What happens if a BTL property currently detailed in the IVA and in negative equity is repossessed during the term of the IVA because of tenants not paying rent leading to mortgage not being paid? What effect would it have on the IVA and what would happen to the deficit once the mortgage company sells the property?Does it become an unsecured debt and would it get a pay out from the IVA monthly payment which forms the dividend?
Would that mean an increase in the monthly payment?
Also the property is not one of the proposed properties in the IVA which would be valued and remortgaged if possible to release the equity in the fourth year, this would be from other BTL properties currently not in negative equity.
Thank you in advance for any advice, I am trying to put my mind at rest about any potential problems that may arise. All BTL mortgages are currently covered by the rental incomes.
can anyone advise me please?
What happens if a BTL property currently detailed in the IVA and in negative equity is repossessed during the term of the IVA because of tenants not paying rent leading to mortgage not being paid? What effect would it have on the IVA and what would happen to the deficit once the mortgage company sells the property?Does it become an unsecured debt and would it get a pay out from the IVA monthly payment which forms the dividend?
Would that mean an increase in the monthly payment?
Also the property is not one of the proposed properties in the IVA which would be valued and remortgaged if possible to release the equity in the fourth year, this would be from other BTL properties currently not in negative equity.
Thank you in advance for any advice, I am trying to put my mind at rest about any potential problems that may arise. All BTL mortgages are currently covered by the rental incomes.