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valuation

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(@manatbushk)
Eminent Member
Joined: 15 years ago
Posts: 30
Topic starter  

they did a valuation on the house and told me the equity was 24,000 late on 2010 which i assumed our payments would come off.
altough u say that contributions and equity are seperate issues, it still means i would have paid ยฃ31,000 once the equity was paid. surely thats not correct. they are now asking for another valuation to be done which might mean i have to pay more equity surelty thats not correct.
can i and what would happen if i refuse to pay equity


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

Hi manatbushk.

I'm afraid that your assumption that monthly contributions would count towards your equity was incorrect; they are treated as being separate issues in a trust deed.

The amount that is paid over in total is simply a matter of adding together your disposable income during the period and the value of any assets that vested in your Trustee when you signed the trust deed. However, it is limited in respect that you wouldn't have to pay over more in total than the value of your original debt level, interest on the debts and the fees/costs of your Trustee.

Wouldn't a revaluation potentially be in your interests? In most areas property valuations have declined recently.

As Mark mentioned in another thread, the ultimate worst case if you either cannot or will not raise the equity is that the Trustee forces the sale of your home. They will not want to do this and will try to find other ways to work with you. However, you must recognise that this isn't optional for your Trustee, they have an absolute obligation to deal with the equity that is there.

I know that these answers are not what you want to hear and fully understand why you consider that you have been treated unfairly at the start of the trust deed process by the company or companies that you selected to help. Hopefully understanding the current position is useful though as you consider where you go from here.

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


   
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