defaults added after IVA commencement

Jennie2299 · 29 April 2018 at 8:08PM

We started an IVA in Oct 2012, in July 2015 we defaulted on our mortgage sold the property and added the negative equity to the IVA. We have just completed the IVA and understand the majority of the reports will come off the report in Oct 2018. The IVA company are saying that the defaults from the mortgage will come off in Oct 2018 as the debt was part of the IVA. The advice from the IVA company was so inconsistent i dont really trust them.
Is anyone able to explain if the defaults will stay for another 3 years or come off in Oct?
Can we ask the mortgage company to remove them?
If they stay will be able to get a mortgage with them on the credit report? (we have the deposit but have been told we have to wait until October to apply.
We have mobile phone contracts, new credit cards that are paid of in full, and on electoral roll. I dont want to wait until october if there is anything i can do in the meantime?
thanks

National_Debtline · 30 April 2018 at 6:13PM

Hi Jennie2299 and welcome to MSE,

Unfortunately, I cannot see how the mortgage default from July 2015 can come off in October 2018? I appreciate the shortfall was added to the IVA but this was not part of the original IVA and the default didn't even occur until 2015. As far as I am aware, it will show for 6 years from the date of default.

Only inaccurate information can be removed, so whilst you can ask the mortgage lender to remove it, I am afraid it is unlikely.

Once the IVA comes off your credit file in October 2018, it should help improve your history and could make obtaining other credit easier. However, the default could affect future credit applications, and you may consider discussing with a mortgage broker (but be careful of fees). A default wouldn't be as damaging as an IVA, but may still be an issue.

Laura
@natdebtline

defaults added after IVA commencement

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