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09/04/2013 1:19 pm
I have been reading the forums for a while, and wondered if you could help. I am nearing my deed completion, but there was agreed equity in our house to clear the debtÔÇô which was fine, and therefore due to be released 3 years on-
However, the housing market has got worse, not better, and now we fear that we won't be able to sell the house, even by reducing it substantially. It has been on and off the market with no interest at all, even at a low price, which means not only might it not realise the agreed deed amount, but also no further expected excess after paying the agreed equity, and therefore the family will be homeless, with no money to help us move anywhere else. I am actually dreading the end of the deed and this coming up. We just do not know what to do for the best, plus if it is put on the market now with an estate agent, there will have to be (another) new home report etc, and who pays for that? We thought that after 3yrs, things would be better, but this has been a very difficult 3 years.
Thank you
09/04/2013 2:46 pm
Hi dan40
It must be very worrying for you. Can I ask a few questions to clarify matters?
How much is the amount of equity that had been agreed at the start of the trust deed? I take it the property is jointly owned, but just yourself in the trust deed?
Would you rather not sell the property if you could avoid it?
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
09/04/2013 3:04 pm
Hi dan
The amount of equity required will probably determine the best way forward. If its a reasonable amount then the normal way would be an extension. If it came to the point the house required to be sold, then the contributions would have ceased at the end, hopefully freeing up funds for the home report. The other alternative would be to speak with the Trustee and let them deal with it.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
09/04/2013 4:42 pm
Hi Mark and Kevin, thanks for your reply.
I owe around £60k which is about the equity value in 2010, - this was a realistic survey valuation then, previously the value had been higher. We were hoping that by now the value might have increased back up a bit, but with no interest even at a low price, I am very worried.
I would have happily moved if it meant all the bills could be paid with just a little over to start again, but if not, we are better off at least with a roof over our heads than not. We just dread planning to move and then no one wants to buy, so we are back to square one.
Sorry to be so downbeat, but it is hard to see an upside
09/04/2013 5:07 pm
Hi Dan
I assume you mean that the Trustee is seeking £60k equity. Can you advise me what the total unsecured debts were as this seems a considerable amount to be able to realise at the end of the Trust Deed.
It may be at this level the only option is to look at other accommodation and let the Trustee deal with the sale. Once a sale is achieved then the Trust Deed would be finalised. If you reach the final payment, as stated previously, this should hopefully free up funds.
Sorry its not a great help.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
09/04/2013 5:35 pm
Is the property jointly or solely owned dan40, and is it just you in the trust deed or your partner too?
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
Topic starter
09/04/2013 5:49 pm
Thanks Mark and Kevin,It is just me, and I owe £58k.
Thanks for the info, maybe I will speak just have to ask the Trustee, regards my options, just wanted some guidance.
10/04/2013 10:20 am
Sorry to press the point dan40 but it might be important - is the property jointly owned or not?
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
Topic starter
10/04/2013 11:53 am
Sorry Kevin,
When I said it is just me, I meant the house is in my name.
Just 2 quick points - What would happen if the house did not sell quickly, or realise the valuation?
If the deed was extended as I see people have mentioned, would I have to keep on with the contrbutions after the 36th payment?
thanks
10/04/2013 12:12 pm
Hi dan40
No your obligation is the agreed contributions and the equity.
If the property took a while to sell then this represents the equity position only. If this achieved less than thought at the start then the Trustee cannot seek to recover any shortfall from you.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
10/04/2013 12:43 pm
Thank you Mark for your help
