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Trust Deed Query?

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(@litebeing)
New Member
Joined: 8 years ago
Posts: 1
Topic starter  

I entered into a Trust Deed in November 2012 to help manage credit card debt. This was protected and to last for 48 months. The following year my home was repossessed and the lender sold the property in October 2013 for £195,000 less than it was worth. Thereafter the trustee verbally agreed to include this as part of the Trust Deed and extend it for an additional 36 months. Their reasoning being that after the sale this became an unsecured debt and therefore should be included even if this was 11 months after the TD was in operation.
To date the Trustee nor myself have not had any written statement from the lender to explain/confirm this alleged debt. My question is: Under the circumstance was the Trustee correct to include this alleged debt into the Trust Deed bearing in mind the above information.


   
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TDA (Debt Adviser)
(@tda-debt-adviser)
Illustrious Member
Joined: 16 years ago
Posts: 13594
 

Welcome to the forum litebeing.

Assuming that you owned the home when your trust deed was signed, I would assume that this new shortfall debt would be included in your trust deed.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds


   
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(@silly)
Eminent Member
Joined: 8 years ago
Posts: 35
 

Now I am concerned, how can your home be repossessed if your td was protected?


   
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David Tannock
(@david-tannock)
Famed Member
Joined: 12 years ago
Posts: 2581
 

It will only be repossessed Silly if you do not pay your mortgage.

The shortfall on the mortgage should be included as a debt in your Trust Deed lifebeing now it’s been repossessed and sold. If the original proposed dividend to creditors falls as a result of increased debts then the Trustee needs to consider the available options to try and balance this out and bring the return back up. This could be an extension of your term to ingather more money.

It can take a lender some time to sell the house and then calculate the total shortfall. Ask your Trustee to get in touch with the lender. You could also give them a call.

David is not currently posting in the Trust-Deed.co.uk forum


   
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(@silly)
Eminent Member
Joined: 8 years ago
Posts: 35
 

Yes, sorry I realised that after my initial panicky post, oops! And apologies to litebeing, I wasn't meaning to be personal in any way, hope you get it sorted.


   
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