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Don't lose your house

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(@elaine50)
Active Member
Joined: 12 years ago
Posts: 7
Topic starter  

Hi

I just wanted to share my experiences of trust deed especially about creditors chasing people for equity in a house.

My Trust Deed finished June 2011 although I'm still trying to get my credit file updated and until all creditors show the accounts as settled I will still have a very poor credit score and cannot really move on.

Towards the end of my TD the td company said I had 21k equity in my home, this wasn't right as all houses in my area had dropped in value. but it looked like a forced sale would occur based on a three year old valuation taken at the start of the td. I knew there was no equity but the creditors didn't believe me!

I did the following
1.get an independent home valuation. Mine cost 100 quid. Go online for a surveyor near you. This showed a price drop.

2. Get print outs of similar houses in your area that are the lower price.

3.quote a lawyers fee for selling as this would need to be covered by any equity, phone any lawyer and ask them to write to you detailing how much they would take for selling your house. My fees would have been 2k.

4. Write to the trust deed company with all this info arguing your case

5. When they see that,in my case, 2k would come off any equity and there would end up being a negative equity situation this seemed to hit the spot

6. Also add in how many months houses like yours have been on the market in your area and the longer its on the market the more costs there are in advertising fees

Don't give up. Eventually the td company said creditors accepted my situation and there was no forced sale. It was really really stressful and the most worrying part of the whole trust deed process. The thought of losing your home is frightening for the whole family so it's worth the fight.

Don't accept the forced sale if you can prove there is no equity. Keep at it,

If this is your situation or a sale has been mentioned as a possibility in the future then start preparing now by taking the steps I've mentioned

Good luck everyone

Elaine

Elaine


   
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(@rockbottomsolidbase)
Reputable Member
Joined: 13 years ago
Posts: 312
 

Elaine, phew, I can feel the effort from your post. Well done with that. I thought it had to be that the agreed equity was payable even with a change in actual value between beginning and end. There's been sooooo much discussion about whether folk paid to 'buy out' the interest and what the amount is and what it actually buys etc, not so much about facing the reality of actual time to sell and costs and few sales for comparisons.


   
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TDA (Debt Adviser)
(@tda-debt-adviser)
Illustrious Member
Joined: 16 years ago
Posts: 13594
 

Hello elaine50.

It sounds as though you worked really hard on this. Well done on the successful efforts to have the situation reviewed.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds


   
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(@elaine50)
Active Member
Joined: 12 years ago
Posts: 7
Topic starter  

Hi
By the time you add all fees such as advertising and legal fees it eats into any equity. I wasn't given the option to buy out and at the start of the td I agreed there was 21k equity but if house prices drop after three years then the new valuation must be sought but creditors won't want that! That's why getting your own independent valuation is vital. There wasn't 21k equity after the three year td period, not my fault but proving that,as you say, was tough but definitely worth it
Elaine

Elaine


   
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TDA (Debt Adviser)
(@tda-debt-adviser)
Illustrious Member
Joined: 16 years ago
Posts: 13594
 

It may not always work this way now elaine50.

Increasingly a valuation will take place at the start with a fixed figure for equity agreed. That would stay the same, whether a home increases or decreases in value.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds


   
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Kevin Mapstone
(@kevin-mapstone)
Member Admin
Joined: 16 years ago
Posts: 4253
 

I'm sure most trustees will ask for the equity agreed at the start rather than a revised, reduced figure. However this doesn't alter the fact that they would get less if they had to go through with a forced sale, so the realities of the situation will usually mean that a compromise can be found if you stick to your guns.

Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.


   
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(@firewalker)
Reputable Member
Joined: 13 years ago
Posts: 440
 

Well done Elaine.

I followed the same process and my Trustee was open to the new information which also worked in my favour. I paid £250 to the
Trustee to remove any further interest.

It would have been mad to try to force the sale of my house. I am still nowhere near purchase price 5 years after buying it.

I think it is worth the effort to do this if the original equity is likely to be erased by the new value and cost of sale.

Fx


   
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(@golfer66)
Eminent Member
Joined: 12 years ago
Posts: 37
 

Hi our trust deed has just finished but we have been told we have an estimated £15000 in out home can anyone tell me how much more they are likely to look for and can they force you too sell your house ???


   
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TDA (Debt Adviser)
(@tda-debt-adviser)
Illustrious Member
Joined: 16 years ago
Posts: 13594
 

Hi Golfer66.

As you've raised the same question on another thread I think we'll keep the answers on that one.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds


   
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