Hi MAC im in same position my TD finished sept last year because i couldnt raise £26k they have offered to extend my TD for 1 more year but when i ask what will happen at the end of this year im told we are not debt managment they will not come out say house will be sold im sorry i entered into this wish i had went to CAB but i was at wits end and entered it without to much thinking hope you get sorted out good luck

Hi Annie- yes its looking grim at the moment. I take it after another year of payments into the td you will have less to pay back next year? Were you given any other options apart from selling or extending the td for another year?
Thanks Mac

Welcome to the forum Mac.

Sadly, as a result of the decline in the housing and mortgage markets, this is a subject that is coming up here from time to time. Summarising the advice that has appeared on other threads there seem to be three main options:

1 - Sell the house. Even if the house did not generate the full £23000 that would spell the end of the trust deed for you once the contributions are conmpleted.

2 - Find someone to pay the money for you. This would also bring the trust deed to an end. As a sale of the house might only generate £7000 you might be able to negotiate with your trust deed company that a sum significantly below £23000 would be sufficient.

3 - Make extra contributions until the £23000 is repaid. Obviously, unless your monthly contribution is pretty high, this could take a very long time and therefore might not be acceptable to your Trustee in the long run.

hI THANKS FOR YOUR POST YOU MUST HAVE BEEN REPLYING TO ME AS I WAS WRITING TO YOU ASKING FOR YOUR ADVICE ! I WOULD LIKE TO TRY TO NEGOTIATE A FIGURE AROUND ABOUT THE 7K AND TRY TO RAISE THAT BY ASKING FAMILY - THAT WAY AVOIDING HAVING TO SELL THE HOUSE. IF I CANT RAISE THE AGREED SUM( IF THEY GO WITH THIS OPTION THAT IS) WOULDIT BE REASONABLE TO ASK FOR TIME TO PAY UP THIS AGREED 7K? EVEN IF THAT TAKES ANOTHER YEAR OR SO. I PAY £300 PER MONTH AT THE MOMENT THANKS

yes we are all in the same boat ,i myself posted a similar thread eariler ,i cannot get a remortgage and the equity in the property is less than 3 years ago , i have been offered to extend my deed for a further year , and then the situation will be reviewed after that .or sell the property , i did wonder tho , as i want my deed to end , i dont want it hanging over my head for a further year,if i did sell they take what equity this is left , and tried to start again i.e ,buy a new housewhen my deed was signed off , how hard is it to obtain a mortgage with a completed deed on ur credit file ???

SORRY ALSO MEANT TO ASK IF THE HOUSE WAS FORCED TO GO ON THE MARKET WE DON'T HAVE TO MOVE OUT DO WE- MAKING US HOMELESS? thanks

if the house sells ofcoures ulhave to move out

hi nevil99- no i meant when the house is on the market do we remain in it ?
Did you try to negotiate a lesser amount to settle the td? it is a nightmare- even if we continue the td for another year we could still be in the same boat.

We had a meeting with the RBS and asked your question- how difficult it would be to get a new mortagage after the td had completed and they said since we had managed our bank accounts with them over the last three years in a good way - had no fines and so on, and they viewed us as 'good customers' they would look favourably on us. Not a guarantee but hopeful.

they also said the longer we wait after the td ends the better so we can work on getting the credit score up a wee bit so maybe selling- renting and using the money that would have been going to the td to save for some sort of deposit would be the way to go? thanks

yeah ,my property will be on the market shortly ,yes you can still stay in the property ,until its sold and you have givin the new buyer an entry date ,you must be out by that date

try to think of selling as the beginning of a new start- it looks like we'll be selling too and that's what I keep telling myself. At least it brings the td to an end. The advice from the bank ( have to say RBS kilmarnock been helpful) is good- rent and try to save as much as you can. Check your credit score regularly, write to any creitors who don't update your file to show the td has completed. keep the relationship good with the bank - get to know the mortage advisor ! After a year or a few years things should be better

Hi Mac.

In terms of your question about negotiating time to pay a reduced sum (a sum connected to how much might be generated by the sale of your home for example), there is no definite answer but your Trustee does have some discretion.

The trust deed company has a responsibility to recover what the creditors are entitled to (and can realistically get), but the actual method of doing that isn't entirely fixed and they will not wish to force you from your home if there is an easier route to achieve the same outcome for creditors I wouldn't have thought.

I do hope you have some success when you discuss this with your Trustee.

The advice that RBS gave you about a mortgage seems sound. The main factors are rebuilding a credit record and saving the biggest deposit possible. Both of these things will take some time, which is also an important factor in itself. There is some more information about this on the "Life After A Trust Deed" page here.

Hi all,

I do feel that it is definitely worth speaking to your trustees and making it clear that you will have to sell to raise any funds from the house and that the likely equity will be significantly lower. I don't see any reason why they couldn't contact your creditors and put an offer to them on your behalf that would mean that the house would not have to be sold. Creditors are realistic and will be well aware of the current housing/mortgage market so I imagine will be amenable to accepting a lower amount than originally proposed.

HI Thanks for that advice. If I were able to suggest a lower sum - say 7K which is realistically what I would get from selling, would the TD end in July as planned and then I could start paying up the negotiated lower sum? Or would the TD continue ? What if my family were able to contribute towards my monthly contribution I could then pay a higher montly sum and hope to raise the 7K in about a year and a half would the creditors look favorably on this - should I suggest it ?

Hi Mac.

The trust deed would be concluded once any agreement you might reach has been completed.

A year and a half doesn't seem excessive given the circumstances, I hope your Trustee agrees.

I do hope you're able to arrange something that is fair to all parties.