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Scottish Trust Deed Forum
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Topic starter
10/07/2010 4:01 pm
Hi,
I wondered if you could make some sense of this situation. I have a house that wont sell. Can I give this back and then go into a Protected trust deed? I have been advised that I can claim housing benefit of ?ú380 as I am a single parent.
At the moment my income is-
Pay ?ú602pm
Child benefit ?ú81 every 4 weeks
Tax credits ?ú640 every four weeks
My outgoings are-
Mortgage ?ú343.70
Council tax ?ú108
Gas and elec ?ú100
Nursery 281.25
Car finance ?ú120.50
Phone and internet ?ú60
Life, building and contents insurance ?ú46.51
Charity donations ?ú6
TV lic ?ú13
Car insurance ?ú20
Petrol ?ú80
As you can see, theres not much to pay for food and things, never mind the debt I have (Which totals around ?ú24,000). Being able to be free of my house and to rent would allow me to claim housing benefit and mean that I did not have to pay for buildings insurance. My life insurance cost may also change as this is based on my home.
I've had the house on the market, but as yet no offers. I just dont know how the bills are going to be paid, as Ive been having my father pay them so far and he cant do it any longer. I cannot become bankrupt as I need my car to get to work and to take my child to nursery. Its not an option to be without a car, otherwise I'd have to give up work. And I think on my work contract I cannot become bankrupt.
Can you please give me some advice?
Thanks
11/07/2010 10:29 am
Hi frusciante
if you handed the keys back and moved to rented, then any shortfall after the property was sold would be a debt in a Trust Deed. Even if you did this while in a Trust Deed, the same would apply.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
11/07/2010 11:01 am
So if I were to hand back the keys and move into rented accomodation asap, and be applying for a trust deed at the same time, would that be okay? Even though by paying a mortgage and rent, I would not have any money to pay the trust deed. Or do I stop paying the mortgage when I hand the keys back? I'm sorry if I sound stupid - I've never had any experience of things like this, and I have never even made a late payment before. I just cannot keep it up anymore.
11/07/2010 11:19 am
Hi frusciante
The timing is not important. If you handed the keys back and made no further mortgage payments, then the arrears would be a claim in the Trust Deed and treated like any other debt. The house would then be repossessed and sold by the mortgage company and if there was a shortfall after it was sold then this would also be a claim in the Trust Deed.
In general, there should be no worries or issues with the property.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
12/07/2010 8:35 am
Frusciante...
The Scottish Government runs a scheme which more or less means that the Local Authority / Local Housing Association can purchase your property and then rent it out to you as a tenant if you are having financial problems......
Here is a link with more info....
(Link Removed - Please Google "Home Owners Support Fund" for further details).
Topic starter
12/07/2010 9:51 am
Hi,
Thanks for all this info. This may sound like a stupid question, and I'm not sure if this is the place to get the answer, but how do I hand my keys back?
12/07/2010 9:56 am
Hi frusciante,
If you are 100% absolutely totally sure that this is what you want to do... the next step could be to contact the mortgage lender to try to arrange a voluntary surrender of the property.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
12/07/2010 10:06 am
I think its really my only option at this point. Thanks.
Topic starter
12/07/2010 10:16 am
I've actually just spotted that on my mortgage conditions, if I am to make any voluntary arrangements with anyone I owe to, I must pay my mortgage back.
12/07/2010 10:33 am
Hi frusciante,
That's a clause that often sits within a mortgage agreement but the practical reality of the situation seems to be as Mark describes.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
Topic starter
12/07/2010 10:42 am
Thanks for your help. Its such a nightmare, made worse by the fact I have no clue as I've never even had as much as a late payment in my life!!
12/07/2010 11:35 am
Hi frusciante,
I understand that all of this must seem very complex. Keep letting us know if there are questions for which you would like answers or opinions and we will do our best to help.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
12/07/2010 1:51 pm
Hi frusciante
I wouldn't worry about this clause. It is merely to allow the mortgage company the ability to call up the security and protect their interests, but in my experience this never happens.
Don't worry, as TDA says, it's pretty standard.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
