Iva HELP

D3ntal

Can someone please help!!

My mum has come to the end date of her iva, she had been advised to sell her house as she had equity and no income at the time (she now has a job which informed the company about). As the house has not sold in the 3 year contract she received an unpleasant letter from the company (not the first I may add!) saying that she has to reduce the asking price by at least £15000! Can she do this as the letter was sent out a few days after the iva end date. She is now wondering if she should look into remortgage or taking out a loan to make a lump sum pay off? She is worried that dramatically reducing the price will not leave anything to buy anywhere else, she is also concerned about her age (63) and able to get another mortgage?
She has had a couple of ppi payments from banks and the have said that the amout due would be deducted but we have not had an update from iva company!
Any advise on what she can do, she is making herself ill with the stress. The iva was taken out I the first place use toy uncles illness who was her business partner who sadly passed away and she has been left with all this, she was left his house but ended up handing the keys back to mortgage company due to amount owing.

Foxy-Stoat_3

D3ntal wrote: »

Can someone please help!!

My mum has come to the end date of her iva, she had been advised to sell her house as she had equity and no income at the time (she now has a job which informed the company about). As the house has not sold in the 3 year contract she received an unpleasant letter from the company (not the first I may add!) saying that she has to reduce the asking price by at least £15000! Can she do this as the letter was sent out a few days after the iva end date. She is now wondering if she should look into remortgage or taking out a loan to make a lump sum pay off? She is worried that dramatically reducing the price will not leave anything to buy anywhere else, she is also concerned about her age (63) and able to get another mortgage?
She has had a couple of ppi payments from banks and the have said that the amout due would be deducted but we have not had an update from iva company!
Any advise on what she can do, she is making herself ill with the stress. The iva was taken out I the first place use toy uncles illness who was her business partner who sadly passed away and she has been left with all this, she was left his house but ended up handing the keys back to mortgage company due to amount owing.

No IP can force your Mum to sell her home or reduce the asking price.

She will not likely get a remortgage due to her age, the IP can't force your Mum to take out another loan, only extend the IVA another year.

When did she take out the IVA and what did her contract say about releasing equity in the last year?

The PPI will just get put into the IVA so the dividend is a little higher.

Was this a business IVA or personal one?

D3ntal

Yes it was a personal business and as there was no other income that's why it was advised to sell the house and there was never any mention of monthly payments. It was a 3 year iva which technically ended this September. We have sent an email to the company confirming the house reduction and also asking what happens if the house does not sell but not had a reply.

UpToMyNeckInIt

The only other thing you need to be aware of is that some older IVA's apparently have much harsher terms regarding equity release than most post-2010 arrangements.

Therefore do check the t's & c's of your Mother's plan. Some do require the sale of property to meet minimum dividend requirements.

As for being asked to reduce asking price, again that all depends on the reasonableness of your expectations: If you think the asking price is reasonable, be prepared to back this up. For example: check Zoopla for sale prices of similar condition/type houses in your area.

Your house is only worth what someone is willing to pay for it. With the market reportedly on the up again at the moment though, it might be worth toughing it out with the IVA company to buy time, and hold out for a better offer.

Good luck.