Stress!!!!

Governor8777

Hi All

I'm just looking for some reassurance and advice if possible, I'm just about to buy the rented property that I'm currently in, (buying it off housing association), then as soon as that's all gone through I will then look to do the IVA, my main concern is that once I buy the property and go through the IVA what chance is there of this all back firing and me getting the property taken off me? I am seriously stressing out about this and the last thing I want is to be in a rented property for 10 years then buy it then all of a sudden it comes crashing down on me and my family! that would destroy not only me but also the tear the family apart!!

any advice will be greatly appreciated.

also I am looking to do the mortgage with Lloyds and the biggest part of my debts are with Lloyds.

thank you

bernard828

First thing's first. It's very rare for people to lose their properties while in an IVA unless they themselves put the property sale forward. Most IVA contracts will say that you need to look to remortgage the property in the final year of the arrangement, and if that isn't possible, then you spend an extra year in the IVA, assuming you actually have any equity in it. So get the "I will be forced to give my house up" idea out of your head because it simply isn't the case,

Secondly, why exactly are you looking to invest in property before entering an IVA? If it makes no difference to your monthly incomings and outgoings, then fine. But if you're sinking money into this property deal then your creditors would be within their rights to ask serious questions as to why you would do such a thing knowing you were insolvent and why they should support your IVA. So be careful!

Foxy-Stoat_3

At the creditors meeting it wont go down very well if you took out thousands in cash from your cards/loans to afford the deposit to buy your home just before you applied for the IVA.

At best, buy your house, then wait 6 months then do the IVA.

Expect to give up equity in your house on the 4th year of the IVA should the house go up in value, if your buying it at a discount it almost certainly will.

Governor8777

Hello again,

Thankyou both for your email it is greatly appreciated!

Bernard828- The reason for me wanting to buy the house and that is myself and my partner and children have been in this property for over 10 years and have been given a £24K discount and as you can imagine most council properties do go for pretty cheap! to get a mortgage is cheaper by about £60 but with house insurance it does work around the same amount in what I am paying in rent, and straight away I am in equity.

I am not doing this to pull the wool over any bodys eyes at all, I just want to get on the property ladder as I know if I go into an IVA and still stay in rented property I'm never going to be able to get an house and I don't want to be paying "dead money" as they call it!

Hope you can understand why I am wanting to do this?

Foxy Stoat- Thank you for your advice, Luckily with a IVA we don't need a deposit, don't ask me why, havent got a clue but I have checked with my own bank and a couple more and they all say the same! so I am lucky in that way.......

Going back to my first post, if I take the mortgage out with my own bank, (Lloyds Tsb) who I probably own around £13K loan, and around £3K credit card, is that just being stupid? or would it be wise to have a look else where to try and get a mortgage? I also owe around £7K with halifax as well, I know it doesnt seem alot to what I have read on ova peoples post but this is kiling me!!

Once again to both of you thank you very much, your replys and advice are greatly appreciated.

Foxy-Stoat_3

If its the same or nearly the same to buy a place than to rent it I dont see there being a problem. If you are getting a 24K discount, this or most of this will disappear on year 4 of the IVA as the IP will make you remortgage your house to release equity to pay back some of the debt you had, unless the mortgage lender doesnt agree which is unlikely seeing as you owe money to them.

If you can get another lender on board quick enough then you could try that. I assume that you are meeting all your repayments on loans and CC's at the moment, if you are and havent defaulted yet then you shouldnt have a problem.

You may want to wait as long as possible from taking out the mortgage to doing the IVA tho rather than the following week.

Good luck!