IVA`s....whats your opinion?

[pebs]

Is this loan attached to her mortgage - together I think they call it.

 

You said earlier that she borrowed the equity - i thought that was this loan.

 

Sorry, its quite difficult as I am ringing and texting her questions!

 

She borrowed the equity and also took out the unsecured loan, just waiting for text to see if it is called together.

[pebs]

Sorry, she is not sure if it is called together, she thought mortgage might be called tracker.

She was granted XXXamount when she was buying house and as house was XXX amount more they give her the rest as unsecured.....is that a together?

 

Does that make sense?

[gizmo111]

So she has got equity then? How much is the house worth, is there a redemption penalty for early repayment, and how much is the mortgage outstanding.

 

Is it a joint mortgage?

[pebs]

So she has got equity then? How much is the house worth, is there a redemption penalty for early repayment, and how much is the mortgage outstanding.

 

Is it a joint mortgage?

 

Sorry she hasnt told me exact amounts on mortgage, so I didnt like to ask.

She has just told me that basically they owe more than the house is worth, plus this unsecured loan.

House prices are around £150,000 in the area but cant be sure.

[pebs]

Ok, went round to my friends house today to get some proper details so I could help.

The £27,500 debt is unsecured and she rang northern rock and they have agreed £50 per month - Result!

 

Now there was another debt secured from NR that had been sold to Link financial for £30,000 so she rang them again (these loans are in her husbands name but he has given authority for her to speak) and the dca was very nasty, and would not accept any offer so she asked what would happen and he said "as in the credit agreement your husband signed we can apply to force sale of the house.

 

I am about to do her a CCA request to see exactly what he signed for.

 

Any advice?

[gizmo111]

Ok, went round to my friends house today to get some proper details so I could help.

The £27,500 debt is unsecured and she rang northern rock and they have agreed £50 per month - Result!

 

Now there was another debt secured from NR that had been sold to Link financial for £30,000 so she rang them again (these loans are in her husbands name but he has given authority for her to speak) and the dca was very nasty, and would not accept any offer so she asked what would happen and he said "as in the credit agreement your husband signed we can apply to force sale of the house.

 

I am about to do her a CCA request to see exactly what he signed for.

 

Any advice?

 

Ok so what they have is - is this right?

Mortgage around £120k - Joint names

Secured Loan £30K - Husbands name

Unsecured Loan £27.5k Wifes name

Other unsecured debt £12.5K - wifes name?

House value £150K

 

I am surprised that NR have passed over the secured loan to a DCA, but thye are one of the most aggressive creditor around.

 

There will be no agreement under the CCA as it is over £25k, there will be some sort of agreemnt obvioulsy though/

[sequenci]

Well if they have negative equity then Bankruptcy may be an option. They would have to consider selling their beneficial interest in the property, you can do this under the low cost transfer scheme. The beneficial interest is sold to someone else for £1, this means that the property would not be disposed of by the Official Reciever.

 

What Will Happen to my Home

 

I think it would be important for them to seek some professional advice before deciding on what to do next.

[pebs]

Ok so what they have is - is this right?

Mortgage around £120k - Joint names

Secured Loan £30K - Husbands name

Unsecured Loan £27.5k Wifes name

Other unsecured debt £12.5K - wifes name?

House value £150K

 

I am surprised that NR have passed over the secured loan to a DCA, but thye are one of the most aggressive creditor around.

 

There will be no agreement under the CCA as it is over £25k, there will be some sort of agreemnt obvioulsy though/

 

Mortgage £150k

secured loan £30k

Unsecured £27k

other debts actually only came to a few hundered and she offered them all £5 a week which they accepted

ALL IN HUSBANDS NAME.

 

They are managing the mortgage and arranged all the other debts today...with my help

 

However Link are being a real pain in the XXXX she put him on speaker phone he was very abrubt and not very sympathetic

[gizmo111]

If he was to go bankrupt, no need for her to, if they are all in his name could they then afford the secured loan and mortgage comfortably without getting further into arrears?

 

Sequenci will know more on this, but I am not sure how you stand when a secured loan has gone to a DCA, not something I have come across. I am wondering if NR have passed the wrong one over to the DCA and it should have been the unsecured.

[pebs]

Oh and her husband rang the national debt helpline and they said if they want to keep there house then bankrupcy isnt an option. They dont want to lose there home as the children are really settled in school.

[gizmo111]

Oh and her husband rang the national debt helpline and they said if they want to keep there house then bankrupcy isnt an option. They dont want to lose there home as the children are really settled in school.

 

 

As there is no equity then this is wrong.

Could they afford the house without the other debts. How much are they paying at full rate on the mortgage and secured loan?

[sequenci]

Oh and her husband rang the national debt helpline and they said if they want to keep there house then bankrupcy isnt an option. They dont want to lose there home as the children are really settled in school.

 

Did they inform the NDL adviser that they had negaitive equity? Do they actually have negative equity? If they do then Bankruptcy *could* be an option.

 

I'm puzzled why a secured loan would go to a DCA, is it registered at the land registry?

[pebs]

Yes they do have negative equity, he did tell ndh advisor this.

Yes they can manage mortgage and other debts now they have all been reduced, obviously it will still be a struggle but she said they will manage, so there is only link to deal with.

 

they are not sure if registered with land registry.

 

Is it worth sending a cca request?

[sequenci]

Was it definately National Debtline they called? There are LOTS of firms who have VERY similar names who will try and sell them something, The OFT are investigating the similarities. I'm just suprised as I know the training for bankruptcy is very, very good and the adviser should have known that bankruptcy could be an option

[sequenci]

 

Is it worth sending a cca request?

 

On the agreements which are regulated it could be an option. Any loads where more than £25k was borrowed are unlikely to covered by The Consumer Credit Act so a CCA request wouldn't be possible.

[pebs]

Yes it was I gave them the number 0808 808 4000 is that right?

 

She has just rang northern rock to find out what debt was passed to link.

 

They said it was a personal loan that went to court and got a charge on the land, it then got passed to Link

[gizmo111]

Yes they do have negative equity, he did tell ndh advisor this.

Yes they can manage mortgage and other debts now they have all been reduced, obviously it will still be a struggle but she said they will manage, so there is only link to deal with.

 

they are not sure if registered with land registry.

 

Is it worth sending a cca request?

 

But the point is they are not managing if they are paying the mortgage short, and the secured loan. How long can they hope to carry on like this? Will their circumstances change over the next year? Wil they be earning more to catch up. Each month they are paying below the amount of the mortgage they are increasing their debt. Juggling and lower payments are only good for a very short time.

[pebs]

But the point is they are not managing if they are paying the mortgage short, and the secured loan. How long can they hope to carry on like this? Will their circumstances change over the next year? Wil they be earning more to catch up. Each month they are paying below the amount of the mortgage they are increasing their debt. Juggling and lower payments are only good for a very short time.

 

She said NR was considering changing them to a fixed rate instead of the variable.

 

I never thought about that gizmo, I`ll have to tell her.

 

I suppose it would be better if they went and rented at least they would get housing benefit if they were stuck.