Need Questions answered if possible please

[rennats]

Re: Need Questions answered if possible please

Hi All,

OK it looks bad, I found the re-mortgage clause in a IVA Modification letter.

Original letter.
In accordance with section 3.2 of your proposal which states that you are to allow a restriction to be entered on your property. The purpose of the restriction is to prevent any sale or change of composition of the property taking place without the knowledge of the supervisor, the restriction will be placed, upon the land register for the duration of the IVA only.

Section 3.2
Property and valued and equity release: After month 54 of the arrangement the supervisor will obtain a professional valuation of the property. The Debtor will then obtain two re-mortgage quotes from reputable brokers / lenders to satisfy the supervisor that the equity realisation is the maximum achievable. The property shall be re-mortgaged to a maximum of 85% loan to value less existing secured borrowings. A re-morgage of less than 85% loan to value is allowable where the lower realisation will introduce funds equating to 100% of the Debtors equitable share or where the Arrangement will receive payment in full.

Where the debtor is unable to obtain a re-mortgage, the IVA should be extended by upto 12 months. The amount by which the additional secured borrowings increase shall not exceed 50% of the monthly arrangement contribution at the time the mortgage offer is obtained. Where it is demonstrated after month 54 that the equitable share is less than £5,000 (gross) the property is to be excluded from the arrangement without extending the existing term. The costs of the re-mortgaging to release equity shall be deducted from the mortgage proceeds and the monthly payments deducted from the contribution. If the increased cost in the mortgage means that dividends to creditors fall below £50 per month after fees, monthly payments are stopped and the IVA is concluded.

If you understand this jargon, please explain in laymens terms.

Any help would be greatfully accepted.

Regards

[rennats]

Re: Need Questions answered if possible please

Hi PlanB

RE:

Do you mean your partner's income was taken into account when assessing your monthly payment to the IVA at the outset?

It's possible that her contribution to the mortgage payment and household expenditure may be considered (to lesson your expenditure) but were calculations done which meant she was actually paying towards your creditors?

Her income was included, as she agreed to help, but none of the debts were in her name, they were all mine. now she refuses to help any more, I do understand her totally for six years she has helped, here argument is why do we have go into more debt when we are already paying debts of. She will not allow me to re-mortgage (and |I can't blame here for that it's her home as well as mine. (For now anyway).

Regards

[Never-In-Doubt]

Re: Need Questions answered if possible please

Are you sure the 5yr IVA hasn't ALREADY been extended (years 5-6)?

[rennats]

Re: Need Questions answered if possible please

Wow that makes sober reading. There's one case where the IVA supervisor was trying to force the debtor to make PPI reclaims to raise extra money for the creditors before closing the file even though the IVA was complete

Grant Thornton are also pestering me about PPI claims, even though they have already claimed back money from some of my creditors. they say they need me to sign privacy policy which states they get 36% of any claim plus to sign all permission forms to enable them to do more checks, at the moment I'm refusing to sign them, the company is Claims Broker Direct which I believe are part of the Grant Thornton Group. pestering bleeders.

[rennats]

Re: Need Questions answered if possible please

Are you sure the 5yr IVA hasn't ALREADY been extended (years 5-6)?

Yes I knew about the six year extenion, but to do another year has broken my spirit totally, ruined my relationship and health. I've a good mind to let the IVA fail and see what happens.

[Never-In-Doubt]

Re: Need Questions answered if possible please

I suggest you start a new tact. Demanding answers, cessation of payments and a full & frank explanation as to what the hell they're doing, before you do ANYTHING else.

[Never-In-Doubt]

Re: Need Questions answered if possible please

I'm off to get Andrew cos this stinks tbh

[patchouli]

Re: Need Questions answered if possible please

I'm off to get Andrew cos this stinks tbh

I agree... even prison sentences end eventually.. this is like renewable torture / punishment !

[rennats]

Re: Need Questions answered if possible please

Interesting from ND --> http://www.nationaldebtline.co.uk/en...ments#chapter6

Remember you need to cross check against the IVA Protocol - that's the IVA daddy --> http://www.insolvencydirect.bis.gov....arymeeting.htm

Thanks for that, I have read them, but the mortgage is in join names could I still loose the house, if made backrupt How can they take my house if it belongs to two people, my partner was not in debt, I was.

[PlanB]

Re: Need Questions answered if possible please

Grant Thornton are also pestering me about PPI claims, even though they have already claimed back money from some of my creditors. they say they need me to sign privacy policy which states they get 36% of any claim plus to sign all permission forms to enable them to do more checks, at the moment I'm refusing to sign them, the company is Claims Broker Direct which I believe are part of the Grant Thornton Group.

Grant Thornton want you to sign a deal with a privacy/gagging clause that says they will get 36% commission on any PPI they reclaim through a Claims Management Company

I'm off to have a sniff around Claims Broker Direct. Can you PM me their details because I don't want to post anything negative about the wrong company on the site.

I wonder if the OFT know about this little sideline of Grant Thornton's since they regulate them.

[ATW]

Re: Need Questions answered if possible please

Does your IVA proposal allow for an extension to 7 years? I've whizzed through this but it looks like it might be 5 years plus 1 which means that they have had all they can get. Don't forget that you don't own all of the equity in your home you share it with the other joint owner (usually 50% each but it depends how your ownership is recorded at the land registry).
Even if the contract permits them to extend by another 12 months it is only if they fall within the criteria set out in your post at 13.57. If after looking at your share of the equity and then whether you actually access that via a remortgage and then how that will affect payments you fall outside of those criteria they cant go ahead.
it might not be as bad as you think.

[Never-In-Doubt]

Re: Need Questions answered if possible please

It might be worth mitigating losses and ask Andrew to write to them (aka kick their arse) on your behalf, for a nominal fee which you'd save by default by cessation of the unlawfully added 7th year payments - as I suggested earlier today.

Just saying like.....

[Never-In-Doubt]

Re: Need Questions answered if possible please

wow - disgusting behaviour shown by this firm --> http://forums.moneysavingexpert.com/...79&postcount=1

[PlanB]

Re: Need Questions answered if possible please

but to do another year has broken my spirit totally, ruined my relationship and health. I've a good mind to let the IVA fail and see what happens.

Let's get to the bottom of all this before you risk letting it fail since you're so near the finishing post (May 2014) unless they trap you into another year. Don't give them any reason to sanction you for breaking your arrangement in some way just yet.

I'm sorry you're feeling so down about things. We're here to help and support you through this. After all it's only money

[rennats]

Re: Need Questions answered if possible please

It might be worth mitigating losses and ask Andrew to write to them (aka kick their arse) on your behalf, for a nominal fee which you'd save by default by cessation of the unlawfully added 7th year payments - as I suggested earlier today.

Just saying like.....

Would Andrew PM to explain what he would do please.