my trust deed needs me to pay an extra 500 pound to protect my property, is this a scam, they say this money has to come from a third party

should i pay this money if i dont they say my property will be checked for equity

ok ill tell you what ive just seen a post that they might extend my trust deed so im paying this cash to get me out of this, i hate the fact that a td has a hold on what i do so im getting oot of this asap

There are a lot of views on this £500 payment ( or £500 x 2 for a couple) ( or £500 x 3 if it's 3) ( or £500 x4 if it's 4 people) the list is potentially endless. All for one house right enough!

Unfortunately it will all hinge on what was agreed at the start of the trust deed.

Mark

ok thank you mark, it does say in my td that this money should be paid early tho they said i can still do this nd im paying this up before my td ends, because i think if they valued my property now i could be a while in this td

also mark can you tell me, i had a couple of missed payments due to unforseen probs nd my trustee said not to worry as long as i paid a small contribution, i sent them bills as to why i coulnt pay the full amount for the 2 months,now there saying it just gets added on , ie extended after my due date for last payment, is this right as i just want out of this now

Yes, the important bit is the agreement at the start (the proposal to creditors and the total balance you agree to pay) This is the balance you need to meet by whatever means to allow the Trust Deed to close.

If you agreed the £500, then this needs to be paid by a third party. It cant come from you as an additional payment in the period of the contributions.

Mark

Mark

Hi royalalfa10.

I do hope that you are able to find a third party to pay over this £500 so that you have some peace of mind on this side of things.

To everyone else reading...

If you're told, when you're in the early stages of seeking advice about starting a trust deed, that a £500 payment is required to "protect the equity" in a property which has no equity please seek a second view. Basically, someone you know is going to have to stump-up £500.

Lots of other trust deed firms, including those represented here by Shona, Kevin and Mark, would follow the exact same process but without the £500 being paid over by someone you know.

There is nothing at all wrong about a trust deed firm asking for this payment. Plenty do (though not as many as used to). It's just that it's a waste of someones money if there is an alternative (which there is).

I know we've discussed this a lot, if it was just my home, I'd probably feel the same as royalalfa10. I would happily pay £500 or ask family for it rather than lose our home or risk it even although there's currently no equity.

I now know it's not rigid nor is it universally applied but when I first tried to get informed I was told if it wasn't paid, for each property, for both my husband and I(£1000+£40 val. fee), as well as around £8000 IP fees x 2, I'd be at the mercy of a creditor seeking to bankrupt me/us and then face being 'shredded' by one of the big 'sharks' appointed by the AIB.This was I think to make paying these amounts seem a good idea?

In hindsight I view this as bordering on racketeering, protection money and the like. I am so glad I found this forum after a friend suggested I visit. I no longer feel that I have no control and less options. Not fully clear on lots of elements yet but getting closer. Thanks to all who contribute and illuminate the rogue element which is rife in the industry.

Is an early (written)agreement to have someone pay the IP (at some time during the PTD) a fee to remove their need to sell the property enough to stop a sale going ahead even if a -ve equity property becomes a +ve equity before the PTD ends? So the agreement at the start is enough even if the money is then paid over time or by a stated point?
Am I over thinkikng this!!

As Mark says, it all depends on what was agreed with the trustee at the time of signing. However, if a £500 payment was agreed and then hasn't been paid then there is a chance that the trustee might seek to sell a property if equity builds up.

Thanks-as many of you have often advised-Whatever's In Writing FROM THE START!