I would still look into sequestration as its likely to take less time to get back on track. With no assets to protect it could be a better option for you.

Paul

Best of luck hellsbells80. Who knows, maybe now it is springtime you might get a bit more interest in the property and get an offer at the price you are looking for. No harm in being optimistic!

However, as you say, if it doesn't work out and the property is repossessed then there are certainly options for you - a trust deed may well be viable as long as you can afford to offer enough to your creditors (if not then sequestration may well be the answer).

I take it that given your previous experience you have ruled out renting the property out again?

Hopefully not muddying the waters hellsbells80 but is it necessary or helpful to get rid of the property. The question of equity being present is always dependent on a sale, sale costs etc will reduce any funds. Has your property been valued for the purpose of the Trust Deed already?

There are other options, such as speaking to a company/investor who offers guaranteed rent for x months / years. If this was enough to meet the costs and stop arrears accruing, maybe the sale is not so urgent?

Some lenders are open to taking a reduced price versus appointing a management company and letting it themselves, do you mind sharing who the lender is?

Some lenders are willing to allow switching to interest only for a set period of time to allow arrears to be reduced.

What level of arrears are you dealing with?

There are companies / investors who will help you find a tenant buyer who would pay a lump sum (deposit) to you, you might pay arrears with that and have a long term secure tenant who would not default or damage your property.

There are a t least half a dozen ways to approach the house issue and your trustee might have an opinion / view as to which are better for creditors or 'allowed' in general.

I can't post links but I can suggest contacts if you are able to look at further possibilities.

Hello and thanks again for all the good advice, on the question of renting out the house again after the last time it almost caused our marriage to end due to the stress and wouldnt want to go down that road again. Have spoken to the bank who gave us the mortgage CITY BANK and they are not interested apart from getting whats due to them, which is fair enough I suppose. The arreaers stand at £1785 and growing daily. However the names of the companies/investors that Rockbottom mentioned might be a route to explore! so if you could I will have the contacts please, thank you. Thank you to Kevin, Mark and Rob for your advice.

hellsbells80, what general region do you live in and what area is the rented property in? There are many contacts and the ones nearest to you will be best in the first instance although larger companies will cover the whole of the country.

worth bearing in mind, I mentioned selling to a tenant buyer, they would be buying but the sale completion being delayed. That suits people who do not currently have access to a lot of mortgage products, it also attracts tenants who intend to be long term, view the property as their own and care for it accordingly.

Your arrears are relatively small and I'm sure you have many options.

Key questions will be the monthly mortgage commitment and the achievable rent.

Just out of interest, did you have an agent for the previous letting? It is very unlucky to have had such a bad experience and not the norm with good vetting and references followed up with good management.

Hi Rockbottom, Our house is in Dundee. We did have a agent they where realy a waste of time and money, Remax! I think we where very unlucky in what happened to our house and to go through that again would not be a place we would like to go. A tenant buyer would be a option if I could find someone in time before the house is took back. I will do some groundwork online today on that. Thanks for your time and advice very much appreciated.

HI

I won't criticise individual companies but there were a lot of estate agents who didn't know what they didn't know in terms of letting and began offering this service when the volume of sales fell off the cliff!!

I don't know if it's permitted to post recommendations for either letting agent or tenant buyer facilitators on a post, TDA might advise?

I can't seem to use private mail facility, or I would send some suggestions.

Hi RBSB.

I've just read through the whole thread and I'm struggling to understand the benefit of this for hellsbells80 or her husband.

Could you explain?

Hello TDA, do you think this is not the route to explore?

I'm just not sure I understand the benefits for you hellsbells80.

I'd be interested to hear RBSB's thoughts as he/she has some knowledge in this area and I may have missed something important.

The benefit really is best judged by you hellsbells80. For me, the benefit always is in knowing other options exist?
Having the property sold without repossession is generally preferable and brokers have said that the existance of a repossession in your credit history is very damaging for future mortgage lending, sometimes more than a discharged insolvency.

In addition, the rental income may provide an excess after costs, as opposed to continued losses if the sale takes a while. That's why I was asking about the arrears level and the rent level/ mortgage payments.

It sounds as if a bad experience has convinced hellsbells80 that there is no benefit in renting the property, there just might be if the negatives of last time are eliminated.

Original value of the property for pTD (equity expected) will also be key.

Thanks RBSB.

Hellsbells80 - Would your personal debt repayments be manageable if the house was rented out and the rent covered the mortgage? Or would you still be contemplating options like a trust deed because of the scale of the debts as they stand?

Hello TDA, my husband has just got off the phone with his TD provider and all is now clear as the route we have to go down. Because my debt level will still remain high. Any money that I got back from the house sale would be to pay a family member back but we have been advised that if I done this I wouldnt be able to go into a TD for 5 years. So only 1 option left I think.

Renting the house out does create potential for future instability.

If there was a period where no rent was forthcoming (for any reason) it could quickly make a bad situation worse.