www.iva.co.uk

Me and hubby are separating, he is moving out the 1 Sept, he will continue to pay mortgage well £700 and I will put £100. He obviously cant afford to do this long term with paying for a rented house and running it as well. We have our house up for sale at £154,950, agents think it will realistically sell for £144, 950. Our outstanding mortgage is around £151,000, where would we stand if we sold the house for less than the outstanding mortgage with agents and solicitors fees etc. I have spoken to the mortgage company they wont help with reduced payments etc "if you dont pay we will start court action with 8 weeks" Very helpful I must say. We both want rid of the house asap.

I have sent a revised income and exp off to Payplan in the hope that my payments can be reduced slightly.

Hope that someone can give me some advice. Thanks in advance.

NME.

If the house goes and there is a shortfall then that shortfall becomes, by definition, unsecured. This can be added to what I assume is a DMP with Payplan. However, this may then mean that you may need to reconsider your options as you will obviously have more debt. An IVA may suit of course, but you may need to give some serious consideration to bankruptcy.

If IVA or bankruptcy is the way you go you have to ask yourself is it worth keeping paying a mortgage when that money may be needed to make a fresh start renting etc, so it is definitely worth keeping the lines of communication open with both Payplan and your mortgage company.

Regards.

Thanks Size 5,

I am in an IVA, and it does say that they can call a variation meeting within the first 24 months if needed. Hubby doesnt want the mortgage to default. I really dont know what the best way forward is.

Thanks again

Sorry no money eva, I can't offer advice but I just wanted you to know that I'm thinking of you, this must be horrible for you. X

You definitely need to speak to Payplan urgently, they may be able to give you a payment holiday or something similar.

Without more specific details I cannot say anything else, but in my view it would be very hard to get a variation unless and until the new situation is, in effect, set in stone. There are a few imponderables here and you cannot guess these things.

Regards.