Dear Manatbushk
I'm sorry to hear that you are having problems with your Trust Deed.
Have you let your Trustee know that you are continuing to receive letters and phone calls from your creditors? If not, your Trustee will be able to speak to your creditors on your behalf.
What was agreed at the start of the Trust Deed in respect of the equity in your house? Was the property valued and was a sum agreed at the start? If so how much are you required to realise? Do you know any third parties who would be willing to buy out the equity on your behalf?
I should be able to offer some more advice, once you have provided the additional information.
Julie

my debts r £35,000 and my house was never valued as far as i know because that was the first thing i said to rep when i met him, will i lose the house ? and he said no. They knew i owned property and the knew roughly what the value was. I keep on sending the letters i receive to my trust deed case officer but nothing seems to change.

i was in a debt management programme and they advised me that the only way to prevent house being sold by my creditors was to sign up for a trust deed

we agreed that i could only afford £200 per month into my trust deed and when i explained to them that i could not see how they could write off £35,000 when i was only paying in a total of £7200 they said they would deal with that as it was a trust deed. I get the feeling that they always new i had the house but never once said i would have to sell the house before i signed up.

Unfortunately signing a Trust Deed does not always prevent a property being sold! This is why we can't emphasise enough how important it is to get everything in writing before signing a Trust Deed.
If your trustee is looking for you to pay funds in respect of the equity in the house they should have carried out a valuation and also obtained an up to date redemption figure from your mortgage lender. How much is your trustee looking to ingather? I would write to your trustee and ask them to provide a copy of the valuation or if they can't provide this, ask how they arrived at the figure they are looking for you to pay. Is your trustee looking for this payment now?
I would also send a letter to your trustee by recorded delivery asking them to contact the creditors that are continuing to pursue you for your debts.
Julie

they did get an up to date redemption figure from my mortgage provider and i can only presume they r taking a market value of the property. they have never stated an amount but they did ask if i could raise funds through my equity. My thoughts r if they r going to force me to sell house at end of trust deed why not raise the funds now. However the fact that i am in a trust deed is causing me difficulties raising funds as you only get a percentage of value.The thing is if it is a problem now and will probably be a problem at the end of my trust deed why advise me to come out of a debt management when it is fairly obvious now that the end result was always going to be to sell the house. They are saying now that i could have remortgaged at the beginning but isnt that just making my debt and monthly payments worse.

Hi manatbushk

I think you need to speak with the Trustee and confirm this Recorded Delivery and ask exactly how he intends to deal with the property and if he will be using value and redemption figure as at the start.

I think you need exactly the figures for the equity to be confirmed.

Mark

have sent a recorded del letter asking for creditors to be advised again and also asked for amount of equity needing to be realised at end of 3 years. Will inform u of reply Thanks

got a message from trust deed company saying they have issued further documentation to my creditors with regards to my trust deed.
they also state that i am atliberty to realise the equity in my home between now and end of the trust deed which is 1 1/2 years. They r aware that i may not be able to realise the full amount however if i have a proposal of a reduced amount i have to forward this for consideration. My problem still is that due to me beeing in a trust deed companies are informing me i cant raise any further monies can u please advise

Hi manatbushk,

Sorry of you have provided this information previously but could you let us know:

1 - Your estimation of the valuation of your home (if it needed to be sold fairly quickly).

2 - How much is owed in mortgages (including secured loans) on the property currently.

3 - Whether you own the home or it is owned jointly with someone else.

1 market value 72,000 houses sold around about for 90,000
we dont want to sell

2 £41,000 no secured loans on property

3 Joint with wife

Have they confirmed how much they are expecting you to raise yet manatbushk ? If they are saying the value is £72k and your mortgage is £41k then there is £31k equity, shared equally with your wife. Therefore your share of the equity would be around £15500 using these figures.

I'd have thought it may be possible to get a remortgage for somewhere near to this kind of amount, but your best bet might be to speak to a mortgage broker who can assess what is available out there. Unfortunately there is a good chance that the only interest rates available to you might be quite high I'm afraid.

However, as previously advised by Mark/Julie, you should insist on written confirmation from your trustee of the equity position before doing anything.

that was the question i asked my trust deed but they still come back with what they said, which was, see what u can raise and give us an offer.
my wife and myself r both in trust deed so the £200 we r paying is £100 each. So my calculation is the same as yours what the equity would be but for both of us.

We have tried 3 different companies and their reply is u wont get remorgage due to being in a trust deed

I see your problem - you certainly would struggle to release any near the full amount of the equity.

It always used to be possible to get remortgages whilst in a trust deed, but the market has undoubtedly changed over the last couple of years. All I can suggest is speaking to a broker.