Into the last 6mths of IVE & no equity?

mtgg

Hi & hoping someone will be able to assist.
My husband I are in an IVA, which is due to end in Oct 2010, so 5mths left to run.
I am just sending back our payslips etc for the last 6 mths and called my IP to confirm what happens between now & Oct 2010.
I have been dealing with a lady who has now left the company, so spoke to a different lady who stated that the last payment is due 30th Sept 2010 & then they will issue the completion cert& then we will have 12mths before our credit record will be clear!!
When we went into the IVA is was stated that “The proposal provides for 60 months of payments of ****. It also provides for potential equity in the house to be released at the end of the arrangement”
I not there is little or NO equity in the property, estimates value is £105k & mortgage of £43k & 2nd secured loan of £63k.
When I mentioned this to the IP, she stated that we would need to get 2 valuations and then if there were any equity we would have to remortgage or if not equity we would have to extend the IVA for 12mths.
But at no time have we been told that if there were NO equity we would have to extend by 12mths.
I do have all my paperwork & annual repts from the iva. My iva comp is Freeman Jones.

In my proposal the papers it state: -
5.1
- 5.2.3 – I recognise the creditors will view the equity in our home as a valuable asset. We therefore propose to make a payment in to the arrangement in satisfaction of any claim by the supervisor or creditors to the equity. This payment can be made by a 3rdparty, raised by way of a remortgage or by any other means. If necessary we will make the payment by way of continuing instalments after the 5th anniversary of the arrangement and the duration of the arrangement can be extended upto 12mths for this purpose.
- 5.2.4 – The amount of the payment will be for the maximum amount possible of the equity in the property, calculated by reference to a professional valuation carried out no more than 6mths before the calculation is made.
- 5.2.5 -If the property does not acquire any equity at all by the time this calculation is made then the supervisor will be able to release any interest in or claim to any equity in the property by himself or any of the creditors bound by the proposed arrangement upon payments by me of a nominal sum of £150.
-

She said that she would spk to the Comp IP and come back to us either today or tomorrow.

So what are the rules with regard to having no equity in the property?

- If there is no equity do we have to extend by 12mths?
- What does 5.2.5 mean – as it states if no equity is there they can release the interest in my property for a fee of £150?

Sorry this is a long post
Thank you in advance

robbies_gal

im with them aswell and it clearly states they could amend payments for up to another 12 months if no equity is left in your property

isnt that what 5.2.3 refers to?

mtgg

Hi
"5.2.3 – I recognise the creditors will view the equity in our home as a valuable asset. We therefore propose to make a payment in to the arrangement in satisfaction of any claim by the supervisor or creditors to the equity. This payment can be made by a 3rdparty, raised by way of a remortgage or by any other means. If necessary we will make the payment by way of continuing instalments after the 5th anniversary of the arrangement and the duration of the arrangement can be extended upto 12mths for this purpose."

The above relates to if you do have equity in the property & they can extend for 12mths.
But, we will NOT have any equity in the property, so I want to know what will happen if there is no equity.

It DOES NOT state anywhere in my proposal that if I have NO equity that they can extend for 12mths
It only states
"- 5.2.5 -If the property does not acquire any equity at all by the time this calculation is made then the supervisor will be able to release any interest in or claim to any equity in the property by himself or any of the creditors bound by the proposed arrangement upon payments by me of a nominal sum of £150."


Sorry for any confusion
Thanks
ClareX

adfax

Hi

My understanding of this is that for a nominal fee of £150 you will be released from the obligation to realise the equity in your property - on the basis that you have no equity to release! I'm not sure how they can justify charging you £150 for this though!

I haven't got my paperwork in front of me to check the wording, but how it was explained to me was as follows:

1. In the final year have to get a valuation. If that valuation shows that I have less that 85% LTV (ie I have more than 15% equity), I have to pay any my share of any equity over and above 15% into my IVA. To do this I have to remortgage or get a secured loan.

2. However, if I can't get an extended mortgage / secured loan - as is likely to be the case given that I am in an IVA - then my IVA will be extended by 12 months.

3. If on the other hand I have 85% or more LTV (ie less that 15% equity), or my share of the equity is less than £5000, then there is nothing to be released and the IVA finishes as planned at 60 months. And mine doesn't charge me £150 for this (sorry - not gloating - just seems strange that they make this charge).

I think this is how your's reads too. Good luck ...

Never before have I been praying for negative equity

mtgg

Thank you

I will be speaking to freeman Jones tomorrow when I finish work & see what they have got to say.

I will advise when I have spoken to them

Many thanks
Clarex

mtgg

Afternoon
I have spoken to my IP & they have confirmed if no equity, i just have to pay the £150 to release us from the IVA.

So thank to all
5 mths & counting:kisses::kisses:
Clare