Selling house, waiting for IVA certificate - how long?

Yorkie1972

We had an offer accepted on a house months ago, the sellers told us after this that they are in an IVA agreement! They have apparently now made their last payment and are waiting for their certificate so have taken their house off the market – it’s only been a month since their final payment, I understand that the certificate can take up to 6 months (or a lot longer when I read others posts!) – can anyone tell me how long their certificates have taken?

It’s been 6 months now, we are selling our house too, and have had 3 of our buyers pull out so far – obviously the longer we are waiting the more likely it is that our latest sellers will get sick of waiting and pull out too, they are aware of the situation though.
We really like this house, but still look for other properties online because of their situation, I just don’t want to end up waiting another 6 months then at the end of it our sellers put their house up for sale again / try to get more money for it. If anyone else has had any experience in this situation we'd be grateful for any advice, we're not very familiar with the IVA process as you may be able to tell!

fatbelly

It varies a lot

Have you checked what's showing on the register?

https://www.insolvencydirect.bis.gov.uk/eiir/

Yorkie1972

fatbelly wrote: »

It varies a lot

Have you checked what's showing on the register?

insolvencydirect.bis

Thank you for this, I didn't know it even existed! So the status is 'current' - I can't see anything else on the details here that could indicate timing. I assume that 'current' can mean that it is complete and they are waiting for the certificate still given that the footnote says:

Individual Voluntary Arrangements will remain visible while they are Current, and for a period of 3 months after the Secretary of State receives notice of the revocation order, full implementation or termination of the agreement.

foxy-stoat

The certificate could take months, do you know if their agreement includes them paying a percentage of their property to the IP? They may have less money to spend on a house that they thought but they are waiting until they know for sure.

Yorkie1972

foxy-stoat wrote: »

The certificate could take months, do you know if their agreement includes them paying a percentage of their property to the IP? They may have less money to spend on a house that they thought but they are waiting until they know for sure.

I've been told after the final payment that the certificates can take up to 6 months which is what's worrying me because we cant event start any of the searches until then so could be 9+ months until we actually move (or not at all if they change their mind!), and from what I understand there isn't really any indication on how long it could take, but it would be reassuring to hear some positive stories or any information that might help.

No, the agreement doesn't include them paying a percentage - that's why we can't proceed with anything yet because they can't tell them they're selling their property (from what I've read this could mean that 100% of the debt can then be clawed back from the property proceeds) - they are moving in to rented accommodation once they have sold the house.

PrettyKittyKat

You sellers are being dishonest and trying to 'play' the IVA company and their creditors. Presumably they have equity.... this should be paid into their IVA. If they were honest they would be arranging this but as you said they have not declared it to their IP and are waiting until they get their completion certificate so they don't have to - which given they have sold their house whilst the IVA is active means they have broken the terms of their IVA. I personally find this extremely frustrating as an IVA is to help people get debt free without loosing their property, not for people to abuse the system and then enjoy their equity afterwards! But I know not everyone feels that way.

Depending on the IVA company it could be any amount of time really, some posters on here report waiting after 12 months for completion certificates especially when there is PPI involved. Also, if they have only just made their last payment then their final account review may throw up some outstanding info (review incomes, additional monies etc).

Personally I would run a mile!

Your sellers should not have put the house on the market until they were in a position to sell.

My advice would be to tell the estate agent that you can't wait any longer due to loosing your buyers but are still interested in the house so once they have their completion certificate they should call you so you can resubmit your offer if you are in the position to do so. Then I would kind of accept that I had lost the house and continue my search for another.

sourcrates

It can take betwen 6/12 months dependant on any PPI claims been made.


I would walk away from this one to be honest, certainly don`t hand over any money, you may lose the lot.