Welcome to the forum Thunder.

I'm sorry to hear that you find yourself in this worrying position.

Problems with equity have long been the source of the most serious issues we hear about here. There seem to be two issues that arise.

The first is that the adviser (frankly sometimes a salesperson) downplays exactly how the equity will work in order to sign up a client. The second is that a client, under pressure from their creditors, doesn't think through truly how they'll manage to raise the equity to bring the trust deed to a close. From your post it sounds as though the first issue might apply here.

The reality is that, when you sign a trust deed, your assets vest in your trustee. They're obligated to use them to help repay your creditors. This isn't discretionary for them. That's the position that your trustee is now in no matter how worrying or unfair that might seem to you.

I'm curious whether the first person that came out to see you worked for the firm or whether they passed your details to a trust deed provider that they work with?

It sounds to me that you should get a valuation done on your home. This might enable you to challenge the valuation that your trustee is using and therefore reduce the equity figure due. Based on your analysis of the values in your area (and assuming that you didn't commit to a fixed figure at the start) this might even make the problem go away altogether.

Hi Thunder

Unfortunately the forum is filled with similar stories and in most cases, the initial meeting is done via a middleman company who will tell you almost anything to get you to sign. It's this 'don't worry it will all be fine' advice is the most damaging.

I have always said that all matters and particularly those involving equity should be clearly laid out before signing anything. Most firms will obtain a valuation before you sign anything and if you can provide an accurate redemption figure for the mortgage, then the equity can be easily calculated and the payment of this agreed before you sign anything.

I wish I could provide an answer which would resolve things, however with nothing in writing the position will be at the discretion of the Trustee.

Mark

Hi Thunder,

It sounds like you have had a really unfortunate time of trying to deal with things over the last couple of years.

I'm always disappointed when I read a post like yours as Trust Deed's if set up for the right reasons and not to just get a ÔÇ£saleÔÇØ then they should normally run smoothly and without problems like this. As others have suggested though often what should be a very important and thorough meeting with you before you sign a Trust Deed can be carried out by a ÔÇ£salesmanÔÇØ who really doesn't have any Insolvency experience.

TDA has summed things up well with regards to what happens when you enter into a Trust Deed and the position that the Trustee is in with regards to your assets.

I would ask for a copy of the valuation from your Trustee which they are using to confirm the amount of equity your property has. As TDA has suggested I would also advise that you request your own valuation of your property to determine the value and from this you can then calculate what you believe to be the equity. By doing this you can then try and negotiate with your Trustee with regards to the equity amount which they are seeking from you. Their valuation may be based on one from the start of your Trust Deed and if you request one today you may find that you have little or no available equity.

Thanks you all for the replies I understand , and because we where in very bad ways both financial and my partner health we probably would have signed anything just as long as we did not have to deal with letters and demands , yes we now understand the guy who came and see us was a middleman salesperson more like . If the trusteed people would not come to a mutual solution and go ahead and force us to sell what is the procedure ?? Should we have to pay for selling since we have no money ?? What is the procedure ?? If the house sell for less than they expected are we still liable for the rest ?? How long usually will take and last should we still have to pay anything considering that we have paid an extra 6 month on top of the agreed 3 years ? Should we still keep paying our building society the interest on the mortgage which we have never missed too . What is your advices considering we have no real equity ourselves ?? At this point we think our best is to let them sell the house and start fresh . Is this possible ? Reminding that we have always paid our agreed payment , should they considere valid our offer of keep paying the 200 a month since they already took it for the extra 6 month and do yous think they would eventually discharge us ??? And would they make it difficult for us to rent a house ???
I know I am asking loads but after what been through we really would appreciate the right help .
Daniel
Thanks .

Hi Thunder.

If you're not going to challenge the sale of your home I'd suggest that you talk to your trustee about how the mechanics of the process will work. I very much doubt that you'll have any out of pocket expenses associated with the sale.

The sale of the home should conclude any responsibility you have for equity, whatever price it achieves. If there are no other outstanding matters you should be discharged then.

You'll have to form your own view on whether to carry on paying your mortgage. Failing to do so may leave you in further dispute with your trustee and the mortgage lender. At some point you might have to find a new home though and I understand that it would be very tough to fund two homes even if it was for a short period.

Your trustee would have no interest in specifically taking steps to prevent you from renting a new home when you need one (if you need one).

Will you get a valuation done on your home? This might make a lot of the stuff mentioned here irrelevant if you're correct about the true worth of your property?

Thanks trustdeed assistant I will probably first get evaluation done .

dear trusteed assistante i have now got the house valued at £120000 and my mortgage figure to pay off £122.000 . The trustdeed are saying that they have phoned a survey and they got £140000 so still looking for the equity .?? or they will force sell of house . i dont understand the logic here we paid for 3 years without failing then they dont agree to our pay plan for the equity , then we found out that the equity is not there and still they want to put me the wife and my two kids on the street??
what is the login in that ? who is going to pay the negative equity now the £2000 on the house that is owned to the bank ?? i am missing something here ?? have they got a magic wand that they can turn my £120000 worth house to £140000 plus???
would be nice to hear from sopme of you expert..
thanking you in advance Daniel.

Hi Thunder

I think when there is a variation in the equity, it may be an idea to contact the Trustee and agree a third valuation to be instructed by a company suitable to you both. On the basis that both accept their findings, then this will at least give you a figure to work towards.

Mark