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Posted: Sat Mar 03, 2012 1:16 pm
by Ricardo
Hi
I thought my IVA was over when i paid my last instalment in september of last year, then 5 days before xmas "great timing" i recieved a letter from my supervisor stating that due to me not being able to remortgage i am required to extend my arrangement by a further twelve months!! The modifacation they are working off is:-
In thee 4th year of the arrangement an open market valuation of the property must be provided to the Supervisor together with a mortgage redemption figure. The debtor must obtain a minimum of 2 formal offers of remortgage which address the debtors share of any equity therein and provide documentary evidence of each to the supervisor. The debtor must accept the offer which provides the greatest return to creditors 100% of the debtors share of such proceeds must immediatly be paid into the arrangement. Monthly contributions may then cease in order to accommodate an increase in morgage payments and the Supervisor may take steps to conclude the arrangement having first written to creditors to ensure there are no objections to the IVA being completed early. Should the debtor be unable to realise his equity in the above manner, the Supervisor must convene a general meeting of creditors to consider the debtors proposed alternative.
They are saying ive got equity of over 7 grand but ive still got 79,000 owing on morgage and property is worth at best 90,000. surely they cant work off 100% the value off my property and if not is there a maximum LTV that they can use to get their figures. So if there is no equity do i still have to pay for a further twelve months, they are saying i do as i didnt remorgage!! I read the above differently and feel they are trying it on to get extra money for my creditors!
Posted: Sat Mar 03, 2012 1:31 pm
by kallis3
Hi and welcome to the forum
If the modification is there in your Proposal/Chairmans Report then you will have to adhere to it.
Have you had a valuation done? If not then you need to do it. It maybe that there is no equity that needs to be released.
Speak to your IP asap - which company are you with?
Posted: Sat Mar 03, 2012 1:46 pm
by Ricardo
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by kallis3
Hi and welcome to the forum
If the modification is there in your Proposal/Chairmans Report then you will have to adhere to it.
Have you had a valuation done? If not then you need to do it. It maybe that there is no equity that needs to be released.
Speak to your IP asap - which company are you with?
Posted: Sat Mar 03, 2012 1:54 pm
by Ricardo
Hi thks for reply, i have contacted my IP (DFD) this am and explained that there is definatly no equity in my property the equity they came up with would be off a 100% mortgage but in all other posts that i have read on here they qoute 85% as the fair LTV if that is what all IP are allowed to go to then there is deff no Equity available and thus no extension needed, am i correct in thinking this.
Posted: Sat Mar 03, 2012 1:58 pm
by lem
Well looking at what you put in your first post, it seems they would be expecting 100% of the equity, however, I would imagine this was prepared at a time when 100% mortgages were available, they are now very rare for people who aren't in an IVA let alone those that are.
You will have to arrange a valuation of your property for a forced sale and try to remortgage for the maximum you can, and provide documetary evidence of this, at the end of the day, yes many IVA's now have the 85% LTV equity clause in, but this is irrelevant as obviously in your case it doesn't and IVA's are always individaul.
Your best bet is to speak to your IP on Monday to clarify the clause in your case
Posted: Sat Mar 03, 2012 2:01 pm
by kallis3
We have an expert from DFD who posts on here - Declan. You can find his details under the 'Ask a Question' link on the left hand side of the page.
Email him and he will come back to you on Monday as he is very good at helping posters out.
Posted: Sat Mar 03, 2012 2:13 pm
by Ricardo
surely IPs should work to the economic climate to work out what would be a fair LTV at any given time..My property was valued at 95,000 in 2006 before they crashed so with 79,000 owing on motgage and a similar property in the next street only selling for 77,950 then how can they justify an extension?
Posted: Sat Mar 03, 2012 2:15 pm
by Ricardo
Will do Thks.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by kallis3
We have an expert from DFD who posts on here - Declan. You can find his details under the 'Ask a Question' link on the left hand side of the page.
Email him and he will come back to you on Monday as he is very good at helping posters out.
Posted: Sat Mar 03, 2012 2:42 pm
by lem
But this is why you need to speak to your IP, your IP has to supervise your IVA which you agreed to when you signed your proposal, yes the economic climate is different now which is why you need an up to date evaluation instead of going by the valuation at the time you signed your proposal, it is highly likely there may be no equity in which case your IP will probably suggest that the IVA concludes, but you still have to fulfill the legal requirements of the IVA by getting an up to date valuation and taking it from there.
Your IVA, as far as you have told us, does not state they will work out what is a fair LTV dependent on the economic climate at the time, it states specific requirements that can't be changed on the whim of your IP, they would have to go back to your creditors to change that.
Speak to your IP, get an up to date valuation, redemption value of your mortgage and then you will know where you stand.
Posted: Sat Mar 03, 2012 2:48 pm
by Ricardo
Will do Thks.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by lem
But this is why you need to speak to your IP, your IP has to supervise your IVA which you agreed to when you signed your proposal, yes the economic climate is different now which is why you need an up to date evaluation instead of going by the valuation at the time you signed your proposal, it is highly likely there may be no equity in which case your IP will probably suggest that the IVA concludes, but you still have to fulfill the legal requirements of the IVA by getting an up to date valuation and taking it from there.
Your IVA, as far as you have told us, does not state they will work out what is a fair LTV dependent on the economic climate at the time, it states specific requirements that can't be changed on the whim of your IP, they would have to go back to your creditors to change that.
Speak to your IP, get an up to date valuation, redemption value of your mortgage and then you will know where you stand.
Posted: Sat Mar 03, 2012 3:44 pm
by Claire03
Hi
Just wanted to say I have exactly the same clause in my IVA proposal and I was in the same position as you in that my IP was saying I had to extend my IVA by 12 mths in lieu of equity. However I provided 2 mortgage rejections and an up to date valuation and after arguing the point that at 85% LTV I had less than £5k my IP has looked at the proposal again and has advised that there should be no extension, what they are proposing is that I pay an extra £150 in lieu of equity which was in my original proposal but removed following the initial creditor meeting. My IP has said they don't need to call a variation meeting and will just advise the creditors at the end of the 5th yr (which is 26th March, so 23 days to go)!!
Not sure what will happen if the creditors won't accept this as my IP won't really answer that question, does anyone have any ideas?
Posted: Sat Mar 03, 2012 4:35 pm
by Ricardo
yeah i just think they must try it on to get more money out of us....23 days and your outa there...well done[:)]
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Claire03
Hi
Just wanted to say I have exactly the same clause in my IVA proposal and I was in the same position as you in that my IP was saying I had to extend my IVA by 12 mths in lieu of equity. However I provided 2 mortgage rejections and an up to date valuation and after arguing the point that at 85% LTV I had less than £5k my IP has looked at the proposal again and has advised that there should be no extension, what they are proposing is that I pay an extra £150 in lieu of equity which was in my original proposal but removed following the initial creditor meeting. My IP has said they don't need to call a variation meeting and will just advise the creditors at the end of the 5th yr (which is 26th March, so 23 days to go)!!
Not sure what will happen if the creditors won't accept this as my IP won't really answer that question, does anyone have any ideas?
Posted: Sat Mar 03, 2012 4:41 pm
by kallis3
Claire - I've no idea I'm afraid - keep badgering your IP for an answer.
Same for you Ricardo.
Posted: Thu Mar 08, 2012 6:10 pm
by Ricardo
Hi again,
just got house valued at 84 -85k and still owe 79k on mortgage so do the IPs have to allow 5k before they work out our equity as ive seen many posts quoting a deminimus of 5k taken off, if so is it a case of they all have to follow these rules!!!and if they work off 85% LTV then theres no equity anyhow..my modification is in the first post if this helps....look forward to any help.....thanks.
Posted: Thu Mar 08, 2012 10:04 pm
by lem
Hi Ricardo, was that figure at a forced sale? if so, speak to your IP the 5k sum is usually to cover selling fees, stamp duty etc which is why they take that off.