Urgent Advice required

ash_bash_girl

Hello there,

I have today lost my life and feel like i have no where to turn.

To give you the full story would take forever, but here is the run down.

I have with my partner been in an IVA for 3 months now and need to move house to be close to my family due to the death of my mother. Wrote to Debt Free Direct to ask permission and the agreed. I have sold house for £96,000 so rang Abbey to transfere current mortgage which they informed me i could do in the early stages before putting house up for sale. However when i come to change it they made me reapply despie the fact that i told them i did not wasnt more money, told me it was standard practice to reapply.
Obviously it is declined.

I can not bare living here any more i would rather slit my throat than continue living here.

Rang DFD to find out my options but i dread what they will say. waiting for a relpy!!!

I am ssooo scared and feel so down and depressed but i feel i have been mislead, everything they have advised me to do has landed me in a swamp and i am stuck.

I can manage day to day but i dunno what i am to do about moving?

I will take any beatings for been so stupid but any advice would be appreciated

Tinka21

Have you tried looking into mortgage lenders that accept applications from people with impared credit?

I think there are a few brokers that specialise in searching these for you to save you the time i think one maybe called amber homeloans but im sure if you do an internet search you will find others.

Try not to feel too down although i know it is easier said than done. The abbey aren't the only mortgage provider out there so have a look around.

hypno06

hi there, sorry to read that things are not easy for you.

I don't have the answer re the mortgage I'm afraid, but I am sure if you give CCCS or Payplan a call they will be able to give you some info, even though you have not been through them. I have always found them very helpful and supportive even though I don't have any sort of plan with them.

Also, don't forget to ask for help to get you through the grieving process. Some of the emotion you understandably have due to the loss of your Mum will be making the financial thing even harder. It may be worth asking your GP to refer you to one of the bereavement counselling services, to help you through with that element of things.

Someone will be able to give you far more information shortly, I'm sure. In the meantime, stay strong, and remember, you WILL get through this.

Shineyhappy

Hiya and I am sorry to hear you are so down, I cant offer any proper help but I wanted to say we dont offer beatings here, although Southernscousser might be into that kind of thing

I hope you can get this sorted and I hope it all works out for the best.

Have you tried speaking to a supervisor in the abbey or if that fails go into one of their branches and point out you want to transfer your current mortgage and nothing else?

RAS

Hi

Sorry things are so down. There are people who can find you a mortgage at a decent rate. The best source of advice here is the bankruptcy sub-board as people there often have to remortgage with difficult financial circumstances.

I would also speak to one of the debt charities and ask them for help. DFD are a company to whom you pay a fee for the IVA. The debt charities can look at your whole circumstances and offer advice on a wider range of problems.

Herbie21

Sorry to hear of this problem.

Very few if any mortgage companies will agree to transfer the mortgage when an IVA is being administered. This should have been told to you by the company.

In the meantime I would consider renting a property as you do not want to let the buyer go.

It should be remembered that an IVA is looked at by the financial institutions in the same way as bankruptcy and in fact some see it as even worse.

The reason for this is that unlike bankruptcy where all if your debts have been written off after one year.....the debts under the IVA scheme are still owing and you will have a liability to the pay under the scheme for 5 years or so. And of course the banks knows are fully aware that because you are under an IVA the moment you default on your repayments you can be made bankrupt.

IVA's should be entered into with caution and you really do need to ask many questions.

In the majority of cases that we see, it would be much simpler if a letter was sent to the creditors seeking their agreement to freezing the interest and to accepting AFFORDABLE nominal repayments instead.

immoral_angeluk

I would definately look into renting for the time being. How much is your mortgage.. would the sale price be enough topay off your debts?

ash_bash_girl

Hi,
there are some good points to look at here. Many thanks for your kind words of support.

There will be no money at all left of the house sale as i ahve a second charge also secured to the house so i will probably end up owing them aswell.

My main concern is moving asap and i am currently looking into renting, just waiting for a reply.

Still waiting for DFD to get in touch to advise me!!!

ash_bash_girl

Hi,
there are some good points to look at here. Many thanks for your kind words of support.

There will be no money at all left of the house sale as i ahve a second charge also secured to the house so i will probably end up owing them aswell.

My main concern is moving asap and i am currently looking into renting, just waiting for a reply.

Still waiting for DFD to get in touch to advise me!!!

Kevicho

I would look at dumping Debt Free Direct to be honest, as someone stated they will be charging for this service, when it is freely available.

Also I feel they have given you bad advice re the house sale, but as IA says, renting is prob your best option for the time being.

When you get to a stage where you want to post an SOA, please do, as we will be able to probably save you some money

Best wishes

Kev

Herbie21

ash_bash_girl

I know that you dont mind me posting this as we have had a conversation today. Hope you are feeling a bit better.

The best course of action is certainly for you to rent in the short term. This is because the mortgage co are now aware of both yours and hubby's IVA and they do not want to transfer the mortage over to the house that you want to buy. The mortgage was interest only so the capital is all still outstanding.

However the other problem is that you have a mortage and a second charge of around £10K. The offer that you have received is progressing well and will proceed BUT is not going to be sufficient to pay the 2nd charge. It will pay the mortgage co in full. There will be a shortfall of maybe £6K assuming the legal costs are kept low. The nett result is sadly that you will leave the house with nothing at all but will have a liability to the 2nd charge. Normally not a huge problem.

However, this debt should have been included in the IVA.

Of more concern is the fact that you both had 2 credit cards that you were struggling to pay minimum payments on and in hindsight should have approached a debt counselling co or even written letters to these 2 companies with a list of your Income & Expenditure and offering nominal repayments at an affordable level with a request that interest be frozen. If you had stated in the letter that you if not acceptable you were considering an IVA most creditors would agree your offer.

In addition you have a small hire purchase debt included in the IVA.

Instead, you were persuaded that both of you should enter into an IVA over 5 years.

I have to say once again, that this is yet another example where I consider that an IVA WAS NOT appropriate, but you were not to know any different.