Deeds of trust and my rights

zzzLazyDaisy

louisejude wrote: »

i have just looked to see what the property is worth, i paid 174,000 for it and it is now worth 171,000.

This is just a guide price. It does not mean that the property would actually sell for this - especially if she is living in the house and does not want to sell, as she is unlikely to be co-operative with the EA or viewers. You also have to factor in Estate Agents fees and solicitor's fees. You need to find the money to cover the shortfall in order to redeem the mortgage, otherwise the lender will not agree to the sale.

You can force the sale but this requires a court order which will be expensive.

Would you be willing to move into the property and wait it out until property prices rise and/or pay down the mortgage to get it back into positive territory? If so, seeing as she is short of money, is there any chance of persuading her to accept a lump sum from you as a condition of signing the house over to you? I know this may seem like a bad idea as the house is in negative equity so she isn't 'entitled' to any money, but it is a way of taking control of the situation and at least them you wouldn't be constantly worried about the devt collectors knocking at the door.

D

louisejude

yes it is, so i understand if it will be lower than that,

the debt for the deposit is £14,000

the first 5 year mortgage was an interest only so obviously none was paid off, just interest. and i believe that the mortgage was continued so like you say automatic.
my concern was that she took this iva out and now they are looking for me.
i have no interest if the property was to profit i just feel like she has dumped me in it, and i cant get a mortgage and i cant move on with my life. i was mislead when i got the deeds of trust, and feel this could carry on until i retire, it seems theres no way out for me except make her sell or bankrupt myself like you say, which is extreme.

louisejude

zzzLazyDaisy wrote: »

This is just a guide price. It does not mean that the property would actually sell for this - especially if she is living in the house and does not want to sell, as she is unlikely to be co-operative with the EA or viewers. You also have to factor in Estate Agents fees and solicitor's fees. You need to find the money to cover the shortfall in order to redeem the mortgage, otherwise the lender will not agree to the sale.

You can force the sale but this requires a court order which will be expensive.

Would you be willing to move into the property and wait it out until property prices rise and/or pay down the mortgage to get it back into positive territory? If so, seeing as she is short of money, is there any chance of persuading her to accept a lump sum from you as a condition of signing the house over to you? I know this may seem like a bad idea as the house is in negative equity so she isn't 'entitled' to any money, but it is a way of taking control of the situation and at least them you wouldn't be constantly worried about the devt collectors knocking at the door.

that is another factor thank you for your advice.
i really dont think she will accept as i have not been around for 4 years

zzzLazyDaisy

The fact is that she has broken the terms of the Trust Deed. I suggest that you go back to the solicitor who originally drew up the Trust Deed for you, and see what your rights are. It might be that you can get an order for sale fairly quickly in these circumstances (I don't know, I am not a property lawyer). But the fact remains that it will be you who ends up finding the shortfall for the mortgage, and the associated costs of selling, so you need to know you can afford it.

louisejude

thank you,
im just waiting for a solicitor to contact me the original wont see me as she took the deeds of trust out with them so they refuse to act on my behalf but i hope someone else will help me. will keep you guys updated
thank you

GDB2222

louisejude wrote: »

yes it is, so i understand if it will be lower than that,

the debt for the deposit is £14,000

the first 5 year mortgage was an interest only so obviously none was paid off, just interest. and i believe that the mortgage was continued so like you say automatic.
my concern was that she took this iva out and now they are looking for me.
i have no interest if the property was to profit i just feel like she has dumped me in it, and i cant get a mortgage and i cant move on with my life. i was mislead when i got the deeds of trust, and feel this could carry on until i retire, it seems theres no way out for me except make her sell or bankrupt myself like you say, which is extreme.

Realistically, if I understand the figures more or less correctly:

You borrowed a total of £174k, but interest has probably increased that considerably. If the ex- is on IVA, and you are being chased for £14k, it is likely that the total debt is more like £188k (174+18).

The lenders are going to come chasing you for every penny that your ex- under-pays. Under the IVA, she's probably required only to pay a fraction of the mortgage interest, so the lenders will come chasing you for the rest.

The lenders probably won't allow the property to be sold unless you can pay off the full amount owed, and I get the impression that you don't have a spare £20k.

Even if the property is worth £171k, there will be sales costs, eg estate agency fees and legal fees.

I can only see 3 possibilities:-

1. You go bankrupt
2. You enter an IVA
3. Your ex- leaves the property and you take up residence with your new family.

I have no idea who misled you about the deed of trust, but surely you must have realised that anything you agreed with your ex- would not absolve you from your debts? I don't know whether you were misled or it was just wishful thinking.

GDB2222

louisejude wrote: »

thank you,
im just waiting for a solicitor to contact me the original wont see me as she took the deeds of trust out with them so they refuse to act on my behalf but i hope someone else will help me. will keep you guys updated
thank you

There's no point spending money on solicitors until you know two figures:

A The total amount owed, including any redemption fees, charges, and unpaid interest

B The realistic sale value of the property less costs

You can get a figure for B by looking at what other comparable properties have sold for recently. You'll need to go round and have a look at the state of the property. It may be pretty manky by now.

If there's a big gap between A and B, what do you think a solicitor can do about it?

louisejude

i really dont know, all i know is i cant possibly spend the rest of my life on a mortgage that i dont not want to be on, and like you say if the ex lost her job where does that leave me, the deeds of trust states that i have no rights to the house but does that change now shes broke her side of the contract.
all i know it seems to be everyone has human rights to things but this.
i dont want to be on the house mortgage the bank cant take it off until she finds someone else ( lets face it she isnt going to take my name off shes reaping all the benefits) the lenders might not want to sell it as they will be out of pocket, theres no way she will give it up to me and let me take it over, and by taking out IVA on the loan thats got into debt im still liable to pay the mortgage is she loses her job or anything like that.
its seems theres not alot that can be done really.

GDB2222

louisejude wrote: »

i really dont know, all i know is i cant possibly spend the rest of my life on a mortgage that i dont not want to be on, and like you say if the ex lost her job where does that leave me, the deeds of trust states that i have no rights to the house but does that change now shes broke her side of the contract.
all i know it seems to be everyone has human rights to things but this.
i dont want to be on the house mortgage the bank cant take it off until she finds someone else ( lets face it she isnt going to take my name off shes reaping all the benefits) the lenders might not want to sell it as they will be out of pocket, theres no way she will give it up to me and let me take it over, and by taking out IVA on the loan thats got into debt im still liable to pay the mortgage is she loses her job or anything like that.
its seems theres not alot that can be done really.

The thing is that say your ex- is only liable to pay 30% of the mortgage payments under her IVA, then that means the lenders will come after you for the other 70%.

You have two ways out of this - pay what they want, or go bankrupt (or do your own IVA).

Your human rights aren't being infringed in any way. You borrowed money, and now you need to repay it. The fact that you did some deal with your ex- is no concern of the lenders. If you can't make the payments, you need to go bankrupt, and the sooner you do that the sooner you will be discharged from bankruptcy and be free to move on with your life.

I'm sorry that I'm being a bit tough about this, but as Annisele said: "I'm sorry, but I can't tell you anything you're going to want to hear." You may as well face up to it.

RAS

GDB2222 wrote: »

The thing is that say your ex- is only liable to pay 30% of the mortgage payments under her IVA, then that means the lenders will come after you for the other 70%.

Umm no.

The IVA covers unsecured debt. The ex is still expected to may any secured debt like a mortgage as normal and then assessed to see how much she can afford towards the unsecured debt in her sole name. The trouble is that all the unsecured joint debts hit the OP.

Jude, you need to speak to one of the free debt charities like National Debtline and Step-change. They may not be able to tell you much about the Trust Deed but they can explain the IVA and the consequences for you.