Final Settlement and equity in house

[tiredandy]

Further to previous query regarding excess equity in house :-

I have finally received a reply from Grant Thornton. In order to proceed with a modification I need to forward house valuation, mortgage redemption figures, updated income/expenditure and a wriiten offer.

If I give them all the details, and they think my offer is too little based on excess equity can they refuse to forward it to the creditors.

Rough figures are as follows :-

Initial Debt 51000
Repayments over 6 years 21312
Repayments made 7104
Outstanding 14208

House Value (on sale at) 209950
Co-ownership equity 98750

My share of the house 111200
Mortgage redemption approx 36000
Agents Fee 1575
Legal Fees 1000
Relocation Fees 1000

Equity Left 71625
Initial Debt Less Payments Made 36792

If I was to offer £20000 do you think they would accept this as a full and final settlement?

This all depends of course on the house selling!!!

Many Thanks

Andy

[MelanieGiles]

Was your property included in the IVA? And is it jointly owned?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[tiredandy]

I was speaking to you about a month ago, the house was specifically excluded from the IVA by means of 12 months extra payments at £296, I own half the property thru the co-ownership scheme, they put up half the cost of the house at the start and are looking £99000 in return based on their recent valuation when the house sells.

Andy

[MelanieGiles]

Sorry Andy - I don't remember every forum posting.

That looks like a good offer to me under the circumstances. If I were your IP I would want you to re-mortgage to the value that would absorb your current mortgage payments and leave you with no disposable income. Hos much is the extra £20,000 going to cost you on a monthly basis, based upon a higher remortgage payment for the remaining term of your mortgage?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[tiredandy]

Hi Melanie,

I am selling my house in order to clear my IVA, and I am going to rent somewhere, so I will have no mortgage, don't want to have to pay all equity to IVA.

Andy

[MelanieGiles]

Try your offer and see whether the IP feels it is reasonable.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk