Hi poorboy

The Trustee will require to deal with any proposed sale. However they are unlikely to agree to this if there would be a shortfall. Also the mortgage company would not agree until they were paid in full.

That said, if the property was repossessed and there was a shortfall, then this becomes a claim in your trust deed. You would not be held liable for hte shortfall.

Mark

Mark

Thanks for your quick reply. I wll give you a few more details and hopefully it will paint a more fuller picture for you.

The lender is Northern Rock and I am pretty sure they will agree to the sale as my estate agent as advised the house would fetch less at auction than what is currently being offered, and they will want to recoup as much money as possible.

Northern Rock do not know that I have entered into a PTD, but as I can't afford to make the repayments they will eventually reposses the house if the sale doesn't go through. Is the PTD likely affect their actions?

Just to confirm, the unsecured debt left over after the sale of the house will fall into the PTD? Which I will still be discharged from after the 36 months?

PB

Hi poorboy

NR do not have the authority to agree to the sale, this will need the Truste's consent and I'm note sure they would consent.

Yes the debt from the repossession will be a claim in the TD.

Mark

Mark

Just to clarify, my Trustee needs to authorise the sale of this house, even though the funds raised will be going to straight to NR, as currently the secured mortgage is with? The sale value of the house will not cover what is outstanding on the secured mortgage.

Can any other creditors from my PTD make a claim against the funds from the sale of the house as it was a secured loan with NR?

PB

Sorry Mark, I meant to ask why would the Trustee not consent to the sale of this property?

It is likely to be a very long time (if ever) before there is equity on the property.

PB

Hi poorboy

Because there would be a shortfall and unless carefull, he would need to have indemnities to ensure he was not personally laible for the shortfall. This would take a wee bit of work to ensure they were in place and require a solicitor etc.

The argument would then be why proceed only to incur the additional costs and time expenses.

Mark

Mark

I see.

In your experience what is the likely outcome of this situation? If the trustee is unlikely to consent to the sale of the house, and I cannot make the repayments, then I assume the only action remaining is for NR to reposses?

If this was to happen, is it likely to have any further adverse affects on me? As I have entered a PTD, my credit rating will pretty much be devastated anyway.

PB

Hi poorboy

In my experience, they will repossess and on the completion of the sale, submit a claim to the Trustee.

Mark