iva mix up

stridur

Hi I'm new so sorry if I make a mistake.
My husband and I started our joint iva on the ninth of November 2009 and have paid and followed it's terms up to now.
In August this year we were asked to obtain a redemption certificate so that our iva company could determine whether we were in a position to remortgage to release any equity from our home.(as we have arrears on the mortgage we assumed that we wouldn't be able to remortgage).
On the twentieth of October we received another letter saying that as a remortgage is not possible we would have to pay another 12 months iva payments,as we were willing to do this we continued with this month's payment.
However today I have had a phone call from the iva to say that they have sent us the wrong letter out and that they want us to obtain a remortgage. We are unsure what to do and feel as if this is unfair. Am I right to complain about our treatment. How do I move forward

SPELLKASTER

I would complain about your IVA's behavior to the correct governing body.

You can make a formal complaint to the Insolvency Practitioner's Association.

Here is the website:

https://www.insolvency-practitioners.org.uk

They have an email address that you can send a complaint to direct and it takes around 15 days for them to reply.

I had to contact them myself after my IVA provider making the payments unaffordable whilst they knew I was on benefits.

Who is your IVA provider?

Giggles_Fairy

It is likely that ther terms / modification on your IVAs stated that if there is available equity you should attempt a remortgage. As you say it is unlikely you will be successful, so the outcome will be the same - 12 extra payments, you just need to perform an administration task. Of course complaint regarding your IVA company if you wish but in the meantime I would recommend attempting the remo so that the conclusion of your IVA is not held up.

stridur

Hi again thanks for that I'm going to contact them and see how things go, our iva is with varden nuttall and to be honest we've been treated like dirt by them pretty much from the start of the iva, the only reason I've stuck with them is that we really needed to get our debts sorted out. It's their total lack of disorganisation that really rankles more than anything, for example last Christmas we were issued with a default notice and when we asked why they basically said that it was meant for someone else and was posted to us! What's worrying us is that we have struggled to pay the monthly iva payment back and if we have to remortgage we won't be able to keep up with the repayments.

Nargleblast

When asked to look into remortgaging you need to get a couple of written quotes from different lenders. You then discuss those quotes with your IP and see which is the more feasible. If you cannot find a lender willing to take you on then you need to provide written evidence that you have tried to remortgage but have been turned down. It is then that your IVA company would suggest the extra 12 months.

I am in a linked IVA with my OH. We rang around and got a financial adviser to come to the house. We discussed the situation with him and gave him the relevant info. A couple of days later he rang us to confirm that the lenders he had approached would not consider lending to us in the current financial climate. He provided us with a letter confirming this, which we emailed to our IVA company. We are now into the 12 extra payments period and will complete next summer. We were pleasantly surprised at how easy this was.

If you feel your IVA company has treated you badly then you should discuss this with them in the first instance. It may take a while to sort out, but you can ultimately refer your complaint to the Financial Conduct Authority (I understand that there is a form on their website that you complete).

stridur

Going to get some remortgage quotes when it's our next day off, so the thought of remortgaging is not a problem it's the fact that we are now on month 61 and counting still paying off our monthly iva payment. If we had been told to do this earlier on we would have done so. It's just annoying to be told that one thing is happening and then finding out that nobody knows what is happening.

longtermplanner

is there a lot of equity in your house? Re-mortgaging is incredibly rare at the moment.

stridur

There is probably about 30,000 of equity in our house but that's a rough guess. Our iva company haven't asked us to have a valuation done either. Apparently they did a drive by valuation at the start of our iva and now they have gotten one off of the Internet. We are now totally panicked as the figure that they have come up with is more than what a house in the best condition on our street would sell for (we've had no money to do anything to the house for five years so it's not in the best state of repair). As I have said before I was fully prepared to remortgage to release equity I just feel that being told one thing and then being told that they had made a mistake smacks of our iva company not knowing what they are doing. We have got to the stage where we don't trust anything what they say.

longtermplanner

I've just seen your original comment that you have mortgage arrears. In that case the chance of you being offred a remortgage are about zero I would have thought.

In which case you will need to carry on paying the extra 12 months fees. Thier mix-up is annoying and stressful but it shouldn't make a difference.

Giggles_Fairy

If you are not happy with the valuation the IVA company have done then get a professional valuation yourself. This would usually stand up much better against an online valuation. It is likely the IVA company has done an online valuation for speed, efficiency and so that customers do not have to do this themselves (usually leading to long delays).

Foxy-Stoat_3

stridur wrote: »

our iva is with varden nuttall and to be honest we've been treated like dirt by them pretty much from the start of the iva, the only reason I've stuck with them is that we really needed to get our debts sorted out. It's their total lack of disorganisation that really rankles more than anything, for example last Christmas we were issued with a default notice and when we asked why they basically said that it was meant for someone else and was posted to us!

If you think their administration is bad now, wait until the whole PPI thing needs to be dealt with.

Well done for sticking with it this far though !