IVA question?

tasha999

I've spoken to CCCS, the IP thinks that Black Horse (a consoladation loan) will not accept the IVA as we've only had the loan for six months, but as this isn't the largest value it shouldn't matter?!

This makes me worry because we've only had one of the Northern Rock loans since November. The IP thinks they'll want another year adding on to the five years. They're sending the paperwork out today. I am worried because that takes it to 6 years with the prospect of releasing equity after 4 years, (would this be added to my mortgage for the last 10 years of its term?)
We will be paying back £550 a month on the IVA..

Depending on the charge for the IVA we will still owe about £25000 of the original debt when the IVA ends. We're in negative equity by about £1000 at the minute, What chance is there that we will have to remortgage the full amount in X years time?

Urgent Advice Needed! I don't know what to do for the best?

(apologies for double posting )

tasha999

Shameless bump!

10past6

tasha999 wrote: »

We're in negative equity by about £1000 at the minute

I might be missing something here, but if you're in negative equity, how can an IVA be applicable for you?

I was one step away from entering an IVA with CCCS, but have decided to pull out and remain on my DMP, due to the insecurity of my mortgage increase when my fixed deal ends.

tasha999

10past6 wrote: »

I was one step away from entering an IVA with CCCS, but have decided to pull out and remain on my DMP, due to the insecurity of my mortgage increase when my fixed deal ends.

I saw that you'd pulled out on another thread, (sorry to hear that, or maybe not depends how you look at it) I'm in a similar situation, my fixed rate ends in feb 2010, the CCCS advisor said not to worry! My mortgage at the end of my fixed rate will be about £85000, we're currently at a rate of 5.65%.

He said that our house would be valued in year 4 of the IVA ~ don't know if this explains the negative equity. We'd be paying back 42p in the pound, but if you work it out, if we remortgage we could end up paying it back for a long time! and the worse case scenario would be .. what if we couldn't remortgage? Would it mean 4 years of paying to lose the house and go bankrupt!!! I've got some serious questions to ask during our joint interview on Friday.

10past6

tasha999 wrote: »

the CCCS advisor said not to worry!

It's OK to say that, but if the creditors or IP decide to file for BR for whatever reason, then what?

tasha999 wrote: »

My mortgage at the end of my fixed rate will be about £85000, we're currently at a rate of 5.65%.

Same as me.

tasha999 wrote: »

He said that our house would be valued in year 4 of the IVA ~ don't know if this explains the negative equity. We'd be paying back 42p in the pound, but if you work it out, if we remortgage we could end up paying it back for a long time! and the worse case scenario would be .. what if we couldn't remortgage? Would it mean 4 years of paying to lose the house and go bankrupt!!! I've got some serious questions to ask during our joint interview on Friday.

I was all in favour of my IVA application when I first applied, however, as time has gone by in setting iy up, my doubts have grown, so much so, as you know, I've decided to pull out.

This is how I feel, if I entered an IVA, and for whatever reason the IVA failed, then BR is a real possibilty with the possible loss of our home.

By remaining on my DMP, I remain in control, if a creditor / DCA decided to try and obtain a charging order, I can defend it, without the possibilty of losing my home.

I think you really should take a very serious look at what's really the best option for you, I believd at the time of my application, an IVA was the best option for us, as you know, I've since changed my mind.

One other thing, if you entered an IVA, chances are it will run for 65 months, and not 60 as lead to belive, the reason for that, your first 5 monthly payments are taken in admin fees, then leaving 60 monthly payments.

tasha999

10past6 wrote: »

It's OK to say that, but if the creditors or IP decide to file for BR for whatever reason, then what?

.

I know what you mean, thats why I added an exclamation mark, he said don't worry because if the rate rose too much there would be an option to alter the amount, (I can't remember the exact name he called it!:o)

The pack has arrived this morning, (along with 6 ignored calls from Northern Rock!:mad:) I've already explained everything to them!!


As for bankruptcy, I don't know how that would effect us, I don't want to lose my home but at present I'm minus £1000 on my mortgage (maybe more with the dropped prices) whats to lose!