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IVA final payment question...
frasernicola
Posts: 6 Forumite
Hi all - can anyone answer this for me?
I'm currently on an IVA through Payplan...just over 1 year in, with 4 to go.
I'm paying the agreed monthly amount and the plan is that after 5 years I then owe a remaining total equal to half of "my half" of the equity in my partner's and I's house.
When I took the IVA it was explained that the good thing about the plan was that the value of the house (as far as calculating the final payment goes) remains at the July 2007 value, so if the value went up my part of the equity would remain the same.
Here is the problem then - given the current situation and the fall in house prices I'm going to be stuck with a valuation far in excess of the actual value of my home aren't I?
Hope that makes sense...I've confused myself actually!
I'm currently on an IVA through Payplan...just over 1 year in, with 4 to go.
I'm paying the agreed monthly amount and the plan is that after 5 years I then owe a remaining total equal to half of "my half" of the equity in my partner's and I's house.
When I took the IVA it was explained that the good thing about the plan was that the value of the house (as far as calculating the final payment goes) remains at the July 2007 value, so if the value went up my part of the equity would remain the same.
Here is the problem then - given the current situation and the fall in house prices I'm going to be stuck with a valuation far in excess of the actual value of my home aren't I?
Hope that makes sense...I've confused myself actually!
0
Comments
-
I understand what you are saying.
But I don't really understand IVA's
do you mean you have to pay the 2nd half of your debt from your equity in the house? I hadn't realised that.
But I do think that no-one can predict what shape the housing market will be in four years time, hopefully you are worrying unnecessarily.0
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