IVA 4th year home with NO mortgage

Fairlander

My wife & I have both got an IVA. She is nearly 59years old, in full time employment & I'm 62 years old & a self employed driver suffering from the recession.

Our house has NO Mortgage. It is valued at £69000.

We engaged a Financial Advisor who was recommended to us by our IVA Administrator. He has informed us & the Administator in writing at a cost of £200 that because of our ages & our joint income he considers that we can't afford to go forward with mortagage / loan applications. If we were to, it would incur £700 in fees which we would have to pay up front. With no guarantees of favourable results.

We have now received from the Administrator an email with an attachment of a letter to the Financial Advisor saying we have not supplied 2 mortgage / loan proposals as per our IVA agreement. We believe the Finacial Advisor to be away on holiday at the moment so cannot do anything.

The Administrator strongly suggests that because of what is outstanding in the IVA's & the fact that we have FULL EQUITY in the house because there is NO MORTGAGE an extension to the five years would not be granted.

We have never missed a payment right from the beginning with the CCCS prior to the IVA's!!!!

Should we be unable to get finance because of our ages & income would the creditors force the sale of our home?

We have read so many stories where it has been said the government set up this scheme to prevent homes being lost but there isn't much mention of properties with NO MORTGAGES. Are my wife & I unique in this?

Help & guidance would be appreciated.

Anondebtadvisor

When you are in an IVA it is impossible to get a remortgage so i would say getting one at your age would be impossible!

It sounds like you have to provide 2 letters stating you have been unsuccessful in your mortgage applications and a estate agents forced sale valuation- cant you just apply for 2 mortgages knowing that you will be rejected? then send these to CCCS that way you have done what is required of you under the IVA terms.

If you provide 2 letters CCCS may call a variation meeting to see if creditors want to extend the IVA for a further 12 months or conclude the IVA.

It is not for CCCS to make that decision - its the creditors decision at the variation meeting

Fairlander

Anondebtadvisor, thank you for your response. I'm new to forums so please forgive any mistakes/errors in layout etc.

I quoted the CCCS as that was our first experience of debt management. We stayed with them until it became obvious that the debts were being sold on and the new creditors wouldn't play ball with the CCCS. Being sued for Bankruptcy by one of these new creditors was a very real possibility.

The CCCS explained the options, one of these was a new product, an IVA. This had to be entered into with a bone-fide practitioner.

So, Anondebtadvisor to recap; we've supplied a property valuation, a letter from our Financial Advisor who has written directly to the IVA Practitioner advising him due to our ages & financial situation we would likelybe refused any offers.

Our main problem & reason for this post is to state we are not attempting to get a Re-Mortgage as we are MORTGAGE FREE.
We purchased the property outright with funds from another property.
There are no charges against the property with exception of the IVA's. We own 100% of the equity.

The property has been valued at £69,000. The outstanding IVA values are somewhat vague but suffice to say the £680 pcm we pay isn't going to allow an extra year to be added. Not enough when there's £69k sitting there.

We are now attempting to get two offers (either a mortgage or a secured loan) the highest has to be accepted by us but, what if the creditors still don't think it's enough!!!!!!!!

As we've adhered to all the criteria & will not have defaulted in anyway, how can the creditors force the sale of our home when it has been stated elsewhere that IVA's were introduced to save people from losing their homes!!!

dancingfairy

Hmmm. I'm wondering how much you owe to start with, how much you paid back during your dmp, how much you will pay back in your IVA etc and what the p in the pound works out at.
What would an extra year in the IVA cost you?
I have not heard of people in an IVA being made to sell their house? Surely that is not the point and the creditors must realise that you are not in a position to remortgage (not that you are not willing to). Surely the creditors wouldn't sign up to the IVA and then still be able to try and force a house sale - that wouldn't be right?
Are you able to offer a lump sum at all to finish the IVA off? I don't know whether you can get a secured loan against the house (being in an IVA or not)? or whether family or friends can loan you a sum to bring the IVA to a conclusiong (I appreciate you'd then still have to pay your family and friends back at the same rate you'd been paying into the IVA but it might work)? Obviously it has to be something you feel confident you could afford as I wouldn't want you to get back in a mess again.
I hope you can get this sorted soon.
df