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Topic starter
26/01/2012 2:35 pm
Hi everyone ,
My partner and i entered into a trust deed in 2010 after my suffering a severe loss of income due to ongoing health issues. After spending a year on an intrest only mortgage and struggling to cover the repayments each month in a vain attempt to keep our home. The intrest only grace period from our lender ended and our repayment mortgage was in no way manageable. So we applied for the mortgage to rent scheme through the Scottish Goverment. On the 12th of January we recieved an offer to put to our lender . This however left a significant shortfall which the letter stated our lender would have to agree to release for this to proceed. I contacted the lender ASAP and on a regular basis from the 12th of January. each time to be told they had recieved no communication of an offer from the Mortgage to rent scheme. However on contacting the MTR people yesterday they confirmed that they had posted the offer on 4 seperate occaisions and also sent it by Email each time. On recontacting the lender armed with this information. I was told it seems the email arrived 30 minutes ago ????
Is this normal practice from certain lenders to increase the interest accrued and penalty payments ?
Anyway i have contacted my Trustee on a regular basis since all this began. But would like a second opinion if possible on a couple of issues?
firstly - we are resigned to the fact that we will lose ownership of our home. Either through ( hopefully ) The MTR scheme and if not through repossesion by our lender. Either way will incur a large shortfall ( which is ever increasing as days go by ). Am i correct in being told that the shortfall becomes a Non Secured debt and is placed into our trust deed? Our trustee and CAB seem to think it should.
Secondly - if this is the case how long would the reposession process take if the lender decides that is the route they wish to persue? As the shortfall would increase thruogh intrest charges and penalty payments as the months pass. Added to this am i correct in thinking that all costs involved with repossesion and sale of the property would fall upon my partner and i ( Meaning if it is covered by the trust deed they would lose even further amounts ? )
Thank you in advance and sorry for the spelling and jumbled nature of this
J
26/01/2012 3:06 pm
Welcome to the trust deed forum teaboy.
I'm afraid that I don't have any experience in how individual mortgage lenders react to MTR offers.
In terms of the information you have been given by your Trustee and the CAB, I see no reason from your comments to believe that this isn't correct.
Different lenders will take differing amounts of time to repossess and sell a property. Much may depend on your local property market as well. Costs will be incurred which will form part of the shortfall debt (which will go into your trust deeds).
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
26/01/2012 3:14 pm
Thank You TDA [:)]
our Lender has said they will contact us regarding the offer at the end of the week ( although on current form they never said which week ). Also we have an appointment with our local CAB money advisor Ref the shortfall. So will keep you posted as things develop.
Thank you again
26/01/2012 3:55 pm
If it does go down the repossession route, work with your trustee and lender to try and get a smooth voluntary repossession. I tried with my lender but because my trustee's firm has a policy of not agreeing to it, it had to go down the formal repossession route. I moved out of the house in October 2010 and am only getting formally 'ejected' this coming Monday!
Glad that's over with....
Topic starter
27/01/2012 9:46 am
Upstream , Thanks for your reply. Do you mind if i ask did you apply for council housing ? If so how did they view your application with you moving out of your property before your lender " formally ejected " you? God that sounds like a horrible couple of words i know. Hope Monday passes ok for you.
