Scottish Trust Deeds Help and Advice

weelassie_2

Hi Everyone,

Please could you give me some advise? We are looking at taking out a Trust Deed. We own our home (or the bank does really! Still mortgaged). We have not faulted with payments on the mortgage, its all up to date. We reckon there is no equity in the house at the moment. Or if there is, very little. I was wondering if any of you have had to sell your home at the start of the TD, or at the end, if it has some equity in it? Or at the end of the TD, i would assume the creditor can't make you do it, as whats signed is binding. Has anyone kept their house? If so how? Would it make a difference changing the deeds to someone not in debt? Then us pay the mortgage as a rent? I just don't want to lose the house. We have 3 kids. Other half got us into this without me knowing!!! I'm just trying to sort it all out now. Been to cccs, but wanted to explore all avenues and what the consequences of a TD would be on our home.

So worried and scared at the moment you wouldn't believe it

Thank you on advance for any help with this awful situation i've found myself in, WeeLassie.

scarednshakin

Hi Weelassie, not sure about what happens to your house with the Trust Deed but someone who knows will answer you soon. Just couldn't read and run!!

It is scary but keep posting on here you get so much fab advice and we are all/have felt the same. Take care sending hugs to you

weelassie_2

Thanks scarednshakin. Will look out for some advise on this. Couldn't sleep last night for worrying about it all. Hope someone can help us out. I really don't want to lose the house. Thanks again, Wee Lassie

Bexter

Hi weelassie,

The best thing to do in my opinion is contact CCCS who can point you in the direction of a company who deal with trust deeds as they can give you advice specific to you. However, I can tell you that I took out a TD 6 years ago and at that point, there was no equity in my property. I was advised that this meant the best thing to do was pay £500 to 'buy out' the property so the Trustee (and therefore my creditors) had no further interest in it - ie it was safe from them.

I don't know if that has changed but I don't think so - obviously the property market is different but my understanding was it was better to do this than wait till the end of the TD and then find there was a lot of equity in the property and have to pay a much higher amount.

Also, if you haven't already, I would search the forums on here for 'trust deed' (or google your question) as there is information about this kicking about.

Let me know if you need any more info - and try not to worry, you shouldn't lose the house and if a TD is the best route for you, it'll be a big weight off your mind.

Bex

magicgirl68

Do you have to do a Trust Deed? Could you consider a DAS? It would protect your assets, and although it might take longer to clear, it might give you a bit more security knowing that you're protected from legal action.

c53204

I have just been discharged from a Trust Deed. I started and finished in the SAME house.

We had a Mortgage (which we did not default on), BUT (a big one), we had secured loans on the house which we had default on - just the same as if we had defaulted on the mortgage really!

The Trust Dee took the Mortgage and the two secured loans into the Trust deed and we managed to get a 'new' mortgage (ableit at a higher interest rate then average).

Two years into the Trust Deed we managed to reduce the interest on the mortgage.

If you don't have any secured loans, just the original mortgage, then I shouldn't see any problems in you keeping the house/mortgage, but as always, check with your TD advisor.

rasps

I'm not sure if this will help anyone but i'm in a trust deed (1yr in) and i was able to get a bank account with a switch card and direct debits (no overdraft, cheque book) which i was advised to do by my trustee (they told me the best banks to goto in my area for the type of account i needed - basic account). I told the bank my situation and they advised me on the correct account for me and i haven't had any problems (touch wood).

It was a hard decision (the trust deed) but i haven't looked back, i actually have a life now - the advisors helped me plan my monthly expenditure so i now work to budgets and can plan things without thinking 'i can't i've no money'

Any questions you have - ask your advisor - it's better to ask stupid questions than know nothing

Wallamoppi

Hi, I've posted over on the BR part of the forum as well but maybe someone here will be able to help me.

We have been in a PTD for 5 months. In that time we have had a dreadful time trying to make ends meet due to a serious under-estimation of our heating/electricity bills by the accountants. They also counted in 5 extra hours a week that my husband was never guaranteed and has since stopped due to the credit crunch. All in all we are having a very difficult time trying to pay all of our essential bills and cannot continue the payment at it current level.

Unfortunately the people in charge of our PTD don't seem particularly bothered by doing ANYTHING for us and we fear that this is all going to end in a BR anyway. They never return phonecalls or e-mails, don't contact the debt companies whose letters we receive at least once a week and seem to think that we should just shut up and pay.

Could anyone give me a general idea of what is usually allowed for 2 adults and one child for the basics like food, utilities etc?

Also, what route would we follow if we were unable to come to an agreement on expenses and had to go BR anyway. Would they deal with it or would the onus be on us?

We are really stressed as they have left us on such paltry means that we certainly can't afford things like haircuts, car repairs or other essentials and can't imagine living like this for another 2 1/2 years!

rasps

Wallamoppi, i was given a six month review to make sure circumstances are still the same, wages and bills kinda thing. Should they not reassess you to ensure payments are practical?

Oh and if your trust deed is protected if you contact the letter writer (i was told not to, but the sheer volume i received - the majority after office hours or on a friday - i just had to) and advise them you have a protected trust deed the letters and phone calls should stop

c53204

I think some Trustees are better than others (as in most things). Mine always sent out 6 monthly review 'forms'.

During our TD, I lost my job and informed them of this. They allowed us to stop payments saying they would resume and the 'missing payments would be added on to the end of the TD when/if I started work again. I started work about 3 months later, informed them, but they wrote and said they did not want any more payments - we only had 4 months to go on the TD.

A few weeks after that we got the letters aying creditors being advised of TD coming to an end, then not long after that the letters to say we had been discharged.

Not sure if we had a 'good' Trustee' or just lucky, but everything went very smoothly from start to finish.

However for the first year, we did have the threatening letters, phone calls, etc - either from our creditors direclty, or companies they had sold the debt onto, but we informed them of the TD and gave details of our Trustee, etc.

Remember, once a TD has started, you should not be in contact with creditors, just enough as to give your Trustees details to any enquiring 'collectors'.