How far do they go?

DejaVu_3

Hi MIVAA, thank you for your advice. I didn't take offence at your comments and I do realise the implications of what I was asking about, and I did at the time, thinking out loud!

As for the equity, I have gone to a company with a good track record of this type of thing. The equity issue will be dealt with at the start of the Trust Deed. I have already had an estate agent in to value the property before I started down this route and he suggested a sale price of between five and ten thousand over what I have on the mortgage, without fees etc. I realise that a valuer may have a different opinion but hopefully it will not be wildly off the other price. I have also explored the DAS route, but it would take me at least the full ten years, by which time I would be an elder in community!

I have noticed that you are a bit of a straight talker on your posts, and that you give a great deal of your time. Thanks once again for your comments.

Best wishes, DejaVu

Charco_2

Dealing with the equity at the start is the best way (especially now with a bottomed out market), it means there are no surprises later. You wont necessarily have to sell the property, but you will have to address the equity. This can happen through
1. A remortgage - remember that this will put the full value of your home onto a less than appealing interest rate - so you'll pay much more interest!
2. A second charge (this will mean you keep your current interest rate and only pay a subprime rate on the £10k of equity you released
3. Third party funds - wife or other family member or friend stumps up some cash to buy out any interest your IP would have in your home. OR
4. Through extra payments if it can be done over a reasonable period of time with your contributions. This would turn your 36month TD into a 42month TD, or a 48 month TD (or less likely, a 60month TD).

Discuss it with your IP sure and give some feed back on here, it'll be of help to those people who lurk in the background looking for info but are too shy to post for help directly!

DejaVu_3

I will have to deal with any equity and as you have mentioned there are a few options available to me, I think it will depend on how much the equity turns out to be which route I take. The process has been a learning curve, and as you can see from above not all of my thoughts have been the realistic! However, I have had a lot of useful information from this Forum. After putting pen to paper and working out how much I owed, just last Monday when I had a letter from Mint lowering my credit limit, I thought it was around 30k, it turned out to be closer to 54k, I started looking at the companies who advertised their services, a lot of them offer a fantasy tale or writing off all your debt without too much effort on your part. Of course, the reality is very different and I then set about finding a reputable company, which I have, no whistles or bells or fancy websites, but a lot of experience of Trust Deeds, and sequestration. But I was forearmed with the information I needed which came from this site and one other.

I think the most enormous first step is getting a grip on the reality of your debt. I was amazed to find that I was not alone, if you Google the Edinburgh Gazette (also one for London and Dublin), anyone thinking that the situation they are in is unique will definately have their eyes opened!

I will post to say how I intend to deal with any equity and how things are going with my application for a Scottish Protected Trust Deed, like the IVA creditors have five weeks to reply. I am able to pay around 27p in the pound to the Trustee, if this is not acceptable then sequestration may be the route I need to take.