Hi mamo25

That is strange advice from the Trustee.

At present the loan company are unsecured creditors and will be included in the Trust Deed as creditors.

I can't see the logic of the paperwork you are being asked to sign and assume that they are going to try and register the loan as a secured loan. They cant however due to the Trust Deed being in place.

My concern would be if there was no equity in the property when taking account of the mortgage and secured loan. If the secured loan isn't in fact secured, then this may alter the figures (if that makes sense!)

Mark

THANKS FOR GETTING BACK TO ME MARK.

YES THE LOAN COMPANY DO WANT TO MAKE THE LOAN SECURED.MY MORTGAGE IS FOR 150K AND THE LOAN WAS FOR 15K.MAKING A TOTAL OF 165K.BUT MY HOUSE IS VALUED AT ONLY 150K NOW.MY T/D COMPANY SAID THAT IF IT WAS ADDED TO MY DEBT THEN I WOULD HAVE SURPLUS INCOME OF £295 WHICH IS THE AMOUNT I PAY FOR THE LOAN.SO MY PAYMENT TO MY T/D WOULD PROBABLY HAVE TO BE INCREASED.THEY SAID IT WAS UP TO MYSELF IF I WANT TO SIGNE THE LOAN PAPERS AND LEAVE IT THE WAY IT WAS OR ADD IT TO MY DEBT.IN A DELEMA AS TO WHAT WOULD BE BEST.BUT IT SEEMS THIS WOULD BE LEGALLY WRONG FOR ME TO GO SIGN THE PAPERS ANYWAY?DO YOU THINK THE LOAN COMPANY NO WHAT THEY ARE ASKING ME TO DO IS WRONG THATS WHY THEY ARE TRYING TO HURRY ME ALONG AND SIGN THE PAPERS SO THEY STILL GET ALL THERE MONEY?

Hi mamo25

Incredible advice and absolutely illegal.

Basically your trustee is saying that you have a list of unsecured creditors (including the loan), however he has agreed to grant a preference to one creditor over all the others by agreeing to the Security document.

In addition, it would not be valid if it was signed by you as your trustee would require to sign this.

Astounding advice, truly astounding.

Mark

THINK I BETTER GIVE THEM A CALL IN THE MORNING.GETTING WORRIED ABOUT THIS NOW.THOUGHT THERE WOULD BE SOME LEGAL ISSUES WITH THIS.MY TRUSTEE TOLD WE I WOULD NEED TO GO SEEK FINANCIAL ADVICE AS THEY WERE NOT QUALIFIED TO DO THIS.BUT SURLEY THEY SHOULD NO WHAT IS RIGHT AND WHAT IS WRONG.GIVE THE GIRL THAT IS NOW MY TRUSTEE HER DUE SHE HAD TO GO AND ASK HER MANAGER WHAT I WAS TO DO..HELP

Hi mamo25.

It sounds as though you've been spreaking to a relatively junior member of the team at your trust deed firm.

I suspect that your actual trustee would have provided a different view.

You may wish to ask them to clarify their advice in writing.

I agree with TDA Mamo25. Advice sounds very dodgy to me. Get everything in writing before you do anything.

From now on make this your motto:
GET EVERYTHING IN WRITING AND FEAR NO MAN.

Hi all

I think Trust Deed Assistant is correct, however I am amazed (well not really) that a firm can allow a member of staff to give out this kind of information.

As uncleben says, please ensure that you get this in writing.

Mark

Hi
Apart from being illegal, it would make no sense to sign the paperwork now. As it stands, there is still no equity in the house, so there appears to be no increased risk to your house. Your Trustee is asking you to increase your contributions, but that will only be for the remainder of your Trust Deed(how long is that?) if you were paying the secured loan I am sure your payments would be for a much longer term!! Once your trust deed is finished, you will be £295 per month better off[:)] It is upto the secured lenders to get the paperwork done correctly....at the beginning!

MY TRUST DEED STARTED IN NOVEMBER 2010 AND WAS FOR 5 YEARS WHICH I THOUGHT WAS VERY LONG BUT WAS TOLD THAT WAS THE MINIMUM THEY COULD DO IT OVER.GOING TO PHONE MY TRUSTEE TO TRY GET THINGS SORTED NOW.

THANKS FOR ALL THE HELP AND AVICE

Its always worth getting a 2nd opinion before signing up to a trust deed.

5 years is possibly 2 years longer than another firm would have had you paying for.

Paul

REALISE AFTER FINDING THE TRUST DEED FORUM AND READING A FEW OF THE TOPICS THAT WE SHOULD HAVE DONE THIS.BUT WE ENDED UP DOWN THE TRUSTDEED ROUTE BY A PHONE CALL FROM A COMPANY TO THE HOUSE 1 EVENING.AS WE DID NOT NO ANYTHING ABOUT TRUSTDEEDS YOU TAKE WHAT THEY TELL YOU AS GOSPIL.HOW WRONG I NOW NO THIS IS.

UPDATE!!!!!
BEEN IN TOUCH WITH OUR TRUSTEE THIS MORNING AND SHE HAS BEEN VERY HELPFUL.SHE IS LOOKING IN TO THIS ALOT FURTHER AND IS GOING TO SORT IT OUT FOR US.

THANKS AGAIN FOR ALL THE HELP FROM THE FORUM

I think from the discussions it is worthy of note that your Trustee may consider, if you have been paying the "secured (sorry unsecured loan)," that the lender has been receiving an unfair preference over the other unsecured lenders and he/she may attempt to realise the funds paid to that lender for the benefit of all the Creditors. Notwithstanding this is nothing you will need to worry about.

I am fully agreed with Memo25 that you need to get all the things in written before doing anything as this is their fault not yours.
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