Hi
Ive been looking over this website for some help and advice. I hope you can help.
Myself and partner soon to be ex joined a TD in May2008, As most of the debt was in joint names, i.e bank loans and overdrafts.
One of the conditions was we relesed equity from our house, it took the TD nearly a year to try and get this organised, by this point with the recession we didn't have the amount of equity in the house. It was then suggested the TD be extended by 1 or 2 years. Is this the normal procedure as i really didn't want this hanging over me any longer than nessecary as i do worry about this.
My circumstances are soon to change as im about to move out an private rent, as a single parent i would now be entitled to working tax credit (i work part time) this will increase my income, but my expenditure will also increase. Does this mean the TD will demand more money monthly? Im also looking for a 2nd job? again what will this do?
My ex partner is happy to stay in the house, we dont have much choice as we are not really in posistion to sell.
Any advice would be appreciated! i have tried speaking to TD but there systems were down and no one has phone me back.
Many thanks
Lynne
Hello Lynne,
Welcome to the forum.
When the Trust Deeds were signed a commitment was made to return a certain amount of money to creditors including the equity and monthly contributions.
As the equity isn't available now it might be appropriate to extend the Trust Deeds to be able to contribute the original amount committed.
I'm interested to hear from the experts on this subject as I am sure it has been a common scenario since the mortgage market worsened and house values declined.
I think that you need to run through your revised income and expenditure in detail with your Trust Deed company. As you say your expenditure is likely to increase which may mean no increase in your Trust Deed payment even if your income has increased.
Hi Lynne
All firms will deal with this differently as nobody really knows what the market will do, however extending the Trust Deeds for a period of say twelve to eighteen months to allow you to continue making a payment towards the equity may be an option. At the end of this period your trustee may revisit the situation again. Do you know a family member who would be willing to pay the sum required on your behalf as this could be an option?
As there will be a change in your circumstances your income and expenditure should be reassessed accordingly. An increase in your income does not automatically mean that you will have to pay an increased contribution. Any increase in your contribution will be fully dependent on your disposable income.
I would also suggest writing to your trustee explaining your circumstances, hopefully they will write back and confirm in writing what they expect of you.
Julie
Julie is not currently posting in the Trust-Deed.co.uk forum.
Hi Lynne
I notice you say that you are "not really in a position to sell". In what sense do you mean? If you and your ex are happy to give up the house then you should discuss this with your trustee and I don't see any reason why it shouldn't be sold - though of course any profit would go towards your creditors.
There is no reason why you should have to pay an extra year/18 months to your trust deeds in this scenario - if it sells for less than the trustee estimated when the proposals were made then so be it, the creditors would just have to accept a lower return. If there is a shortfall to the mortgage lender then that can even be included in the trust deed too.