Welcome to the trust deed forum Timeforpanic. You're our 1000th member and I do hope that we'll be able to help you.

Is the settlement figure to cover equity, perhaps in your home?

How much short of the figure you're looking to raise will you be?

Hi TDA. I sincerely hope you can help me. Yes the settlement figure was to cover equity. The original figure (at the signing of the td) was £15000. The offer put to our trustee was £9000- this was accepted. My friend now says he can only loan us max £6000. There is no way they will accept this figure. Through "doorstep" loans, the most I could raise myself would be £1000, totalling £7000. My friend would want to be paid back straight away, as in start to get paid back straight away so it's a catch 22. I don't think I can ask to extend payments as I can't afford to pay the three at the same time. The thought of losing my home for £2000 is turning my stomach. I just feel so deflated.

It may be necessary to do a combination of lump sum plus extending the term of your trust deed to cover the rest. Hopefully you can come to an arrangement with your friend that would mean this would be affordable. Get any agreement in writing from your trustee though - especially their agreement that the £9k total still stands despite some of it having to be paid by instalment.

My advice would be to steer clear of expensive loans if possible though, you don't want to get into a debt juggling scenario as it can easily get out of control.

Thanks for the reply Kevin. If I didn't take a doorstep loan, I would be £3000 short. My current monthly (ptd)is £260, so you are talking about another year to make this up, even if they accept this arrangement. I don't think my friend will wait that long before I can start to pay him back either. I know if you don't ask and all that, but my trustee has been great (accepting the reduced figure)- I don't want to be seen as taking liberties. It's such a mess now.

Hi Timeforpanic.

I don't think that you're taking liberties at all; you're clearly very determined to deal with this as best as you can.

I think that you have to ask your Trustee about all of this as the decisions of someone else mean that you now cannot do what you originally believed that you could.

I too would urge caution against the doorstep lending idea. The interest rates on that type of loan could easily start a cycle that brings you back to the situation you're currently working to resolve.

Thanks TDA. I just want to get up to that magic figure any way possible, as the other options don't seem feasible. Basically I'm stuck.

Hi Timeforpanic.

The reality is that you can only do what you can do. Trustees are generally realistic in this respect and I think it's well worth being open with yours to try to find a workable way forwards. I don't think there's any harm in trying anyway.

The alternatives to coming to an agreement aren't attractive to your trust deed firm either.

When would be the best time to inform my trustee of the change? Why I ask is if they can't see a way forward, could they start proceedings now to force me to sell my house? If I wait until January, then it gives us more time to see if anything turns up or more time to look elsewhere for somewhere to live. I know I should inform them now, but the thought of being out by Christmas isn't too appealing. Although I really don't like having this information and not sharing it with them, as I say, they have been really good with me.

Hi Timeforpanic.

So long as it makes commercial sense for your creditors, your Trustee would much rather avoid conflict with you over your home.

If you think you might be able to improve the offer you can make over the next few months I can see the logic in holding off bringing this subject up.

You'll have some time to raise the equity; though I'd imagine the trust deed firm will be interested to know how you intend to go about this once the monthly contributions have reached the end of the planned term.