Hello GoneUnder

I can sense the total frustration and upset about your situation. It will feel unfair. What would your options have been at the time if you had been told clearly that you may have to sell your home at the end if you could not raise the money? What else would you have done to get out of the financial mess that took you to consider the Trust Deed? Sometimes we can forget that that may have been our only option irrespective of the house. I was in a very similar position to you, as I mentioned before so understand the anxiety.

I read that you have default dates that are incorrect - that wont be helping the matter from a credit report perspective.

This piece of thinking may not be applicable, however, if you think a re-mortgage might be possible after a year out of your Trust Deed (I guess someone has told you that), does that mean after you are discharged? I am thinking if you started it in 2008 and it is 2014, then the Trust Deed would fall of naturally after six years. that only leaves the defaults to be dealt with.

Could you speak to your Trustee, discuss with them that you may be able to raise the additional money after the six year period and you would then apply to have it re-mortgaged and refund the money to them.

In the meantime, immediately start a focused effort to contact all the companies whose default dates fall in line with the Trust Deed Date. From my own experience this could take a few months. But it means that they will fall off around the same time as the Trust Deed.

As I see it, your options could be considered as:

Accept you will have to lose your house and set the wheels in motion. If it does not realize the figure for the Trustee by offer, you may get to keep it? The Advisors here can advise better on that.

Accept that the time in your house is over and that a new home may give you the new start you need for a different future. This actually was the case for a friend of mine, who does not regret one iota selling his home and now rents privately. He did not want to do that and now is grateful he has. (I appreciate that it can be difficult to get a reference if you are still showing a Trust Deed but again that may be falling off very soon).

Speak with your Trustee as described above and discuss timings for getting a re-mortgage. See if they will come and go with you until the Trust Deed Disappears. In the meantime, it would be essential for you to get the default dates corrected.

The essence here seems to be timing - and if you can get some leeway with Trustee one way or another - so that the Trust Deed falls off your credit report, then that may give you some options. Perhaps the Trustee could make an interim payment to the creditors then await finalization of any equity.

This thinking may of course not fit the thinking of the experts here or the realities - but it would be my approach to try if I were in your situation.

If you do not mind me suggesting that you focus on what you want (house, relationship with Trustee etc) rather than the frustration and anger and what you don't want. That makes it easier to see the
actions you need to take and the strategies to employ to help you achieve it, and it helps you to present solutions rather than problems.

We have finite energies when stressed and anxious. I think it is a good idea to move your mindset to what you could possibly achieve rather than the unfairness of it all. (I have been there).

Best of luck.

Thank you for an excellent post Firewalker.

I think, sadly, the possibilities of resolving this via a remortgage are limited.

Yes, a trust deed will no longer appear on a credit file after six years. However application forms and insolvency checks are still likely to bring an undischarged trust deed to light. A mortgage broker might also feel obligated to bring a material fact such as this to the attention of a prospective lender.

Sorry that I have not added anything more constructive.

Hi,

A very well thought out and useful post firewalker.

Even although the record of a Trust Deed or defaults on a credit file will drop off, the fact that goneunder will still be subject to the Trust Deed will make it almost impossible in my opinion to secure a re-mortgage.

When someone signs a Trust Deed an Inhibition is registered and when a lender looks at a possible re-mortgage or a solicitor tries to conclude a house sale they will check a register which will show that there is an Inhibition and this will prevent the sale but also identify to the mortgage lender that there is a Trust Deed.

Even if for some reason a re-mortgage could be secured there is also the issue over the loan to value for the property and equity.

Unfortunately if the Trustee has established that there is equity and this is the up to date position then a sale will need to be considered if there is no other way of obtaining the equity.

If a sale does happen then it's the Trustees responsibility to try and sell the property for the maximum amount possible and what the property is valued at. If the Trustee experiences difficulties in selling the property on the open market then they can consider an auction. In my experience if a property has £25,000 of equity it would be unlikely that this wouldn't sell for a sum enough to justify the sale. If it's sold but only £15,000 is ingathered then this is what is ingathered. The Trustee would need to be confident that the property will sell before placing it on the market and they can do this by speaking with local estate agents to gauge their opinion on this.

Again like TDA, I'm sorry that I have not been able to add anything more positive or constructive.

Thanks again for all the advice .
Some days I think just walk away , let it go !!
And other days I just want to hold on .
Exhausted thinking about it so trying to put it out my mind this weekend.
I will let you know what happens .

Thanks