iva F & F Settlement

southgate999

Hi all,

This is my first thread on this subject.

Myself & my wife have been in an iva for past 3yrs, we have the opportunity to make a F&F. :j

Have been looking through loads of posts for advice now have an idea what to offer and how to go about it.:eek:

We may have some equity in our property but not sure.

Having read on some other posts that this could affect the F&F.

My question is how can we release this equity if no one is prepared to give us a Mortgage due our credit rating being in an iva??:cool:

Gimpsdad

That's partly the point, you can't, or will find it incredibly difficult at the very least. Whilst a F&F cannot be guaranteed to be accepted, assuming it is from 3rd party funds then they are usually very successful when proposed. A bird in the hand is worth two in the bush is not an unfair assessment of the way that creditor representatives seem to view the matter.

southgate999

This is as I thought, does seem to be an added unnecessary worry for debtors with this asset. Thinking they may have to sell or try and remortgage there home.

Ours is a loan from our daughter and son-in-law to give us peace of mind and less worry.

I'm led to believe by other posts that the process of F&F can take up to 6 months to complete.

southgate999

Hi with an annual review now due I have gathered our paperwork together and ready to go for it.
Having spoken to our supervisor feel a bit down about it now.
He didn't seem to won't us to make an offer and stated that they are also due £14,000 from any equity released from the property and this offer was very unlikely to be accepted.
Which I tried to explain getting a mortgage was highly unlikely.
We've offered £5750 as a F&F.
Paid 36 x £290 = £10,440
Offered £5750 + 2 x £290 next 2 payments till accepted with 2 years to go on IVA.
They would have got £17,400 possibly £20,880 if ran on for another 1yr. Offer is payments 38 x £290 = £11,020 + f&f offer £5,750 = total of £16,770 as a total paid back, is this really that unacceptable.

Does anyone think it worthwhile to put in the letter or a covering letter our mortgage chances or the payment figures i.e. Mortgage of £162,917 interest only with 19yrs remaining =
Payment of £764.00 per month. If on repayment would be £1050.00 approx which at the moment allows us to pay our IVA.
Chances of getting a 19yr mortgage aged 52yrs with less earnings than 6yrs ago zilch.
I think the supervisor is more concerned about what charges they will lose.
Any advise greatly appreciated.

regards
south

milliemonster

I think a lot depends on what was stated in your proposal regarding the equity, if it stated you would release the sum of £14k in the 54th month then they will still want this realised (ie incoorporated into the F&F offer), if it says something about getting an up to date valuation and remortgaging up to 85% of the equity in the 54th month then you have more leverage in offering a reduced sum in the F&F, depending on the amount of equity you hold now at the point of offering the F&F.

Whilst the chances of getting a remortgage are small, creditors will still want something regarding the equity, in older IVA's what is happening now is that a variation meeting usually has to be held if you can't get a remortgage for them to accept an extension.

I take it your original IVA was looking at a dividend of 60 x 290? plus the £14k equity? which is a total of £31400, you've paid £10,440 which leaves a sum of £20960, you're only offering 5750 with no extenuating circumstances to finish so you can see why this doesn't look favourable. This is if the specific sum of £14k equity release is asked for. If it isn't then looking at an extension of 12 months in lieu of equity would mean a remaining sum of £10440 of which your offer of 5750 is still very low so I can see why they possibly would not go for this amount.

I don't think putting in a letter regarding your mortgage makes any difference, you need to be guided by your IP in this, however at the end of the day they are duty bound to put your offer to creditors if you insist

southgate999

It does say about re mortgaging maximum of 85% loan to value. To be introduced following a valuation after month 54.

The 14000K was the estimated equity in property in 2010.
I know £5750 seems low but is only £4110 below the 72 month total.
Would you mind advising me on a fairer offer?

Forgot to mention reason for f&f, this due to the fact I work 2 jobs one full/time and one part/time at present and in the current financial climate am finding harder and harder to find secondary employment.

regards

milliemonster

In that case southgate, I would stick with the £5750 but basically explain to your IP that you are unable to continue in 2 jobs and will be giving up the part time role and therefore won't have enough to continue to fund the IVA, noone should have to work more than full time to fund an IVA and I think this would be extenuating circumstances to request a F&F with such a large reduction.

Otherwise, if you aren't prepared to say that, then I think they would be expecting nearer to the £10440 they would get if the IVA ran it's course so i would be looking at around £9k with another couple of payments on top.

southgate999

Hi,
Been 4 months now since we contacted IVA company, in early Sept we was informed it was being dealt with but they were very busy!! Not very happy, as this was sent of to them the 1st week in June and have had no correspondence or information from them whatsoever.

Last month had a call from them saying we should claim back PPI payments which I informed them we were sure we hadn't paid any.
But as it was through the IVA company felt we should pursue just in case we were mistaken.
After reading an article in the paper I now feel we have been duped into this so as to hold up our F&F.
This month unless we start using our Daughter/Son-in-laws Money offer we cannot keep up the existing payments.
Feel very despondent and apprehensive to call Iva company!
Sorry for the long thread.

Any advise would be greatly appreciated.

milliemonster

Ring them and ask for an update, if you approached them about a F&F in June, we are now into October and it's ridiculous that they haven't got the proposal put together by now