- Mon Dec 02, 2013 12:13 pm
OK playing devils advocate here:I am a mortgage lender
, you come to me for a mortgage, I look at your CRFs, I see a reduced repayment DMP, defaults, past issues. Do I want to risk giving you high level debt when there are issues with low level debt, or to I tell you go go find a sub-prime lender that may give you a mortgage at a horrendous rate. I think I would be saying go sub-prime as there are many people with good records I can provide a mortgage to.I am your creditor/DCA on your DMP
, you come to me with a Full and Final, tempting, but you are in a good job, you have property, you are paying well. I think I will say no for now as this is a good quality risk as you give them some income each month.I am your creditor/DCA on your DMP
, you come to me with an lump sum IVA. Oh now that is tempting as if I dont jump, then I may have it enforced on me by the IVA itself. Some of the others are accepting much lower offers, I have to do the same. OK I'll go for this before I loose out oddles of money. This is very doable!You move out, sell the property and go into rented.
Your income increases as you are now only paying rent not the higher mortgage, therefore you can pay down your DMP quicker, a couple of the DCAs accept a Full and Final on the DMP, the others dont, but you still end up paying more than now as your excess is more. Cant get a mortgate as the DCAs are still screwing your CRF up for years to come.You move out, sell the property and go into rented.
You offer the equity as a lump sum IVA, they accept, so all excess you earn each month is now yours, which means you can live again, and more importantly save again. ALL adverse credit is gone form your CRF, you can rebuild again. I six years you can get a decent mortgage (assuming that the property market hasn't collapsed again).
I cannot tell you which route to go, I can only suggest consequences of each route, but looking though this lot there seems to be a good route that may well work well, and end the misery quite quickly.