Trust Deed Forum - Payment Break or 0.00 Contributions?
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 Payment Break or 0.00 Contributions?
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Stumbledoor
New Member

3 Posts

Posted - 16 May 2019 :  16:38:45  Show Profile  Reply with Quote
Afternoon all,

Over the past year I've had a nightmare with the property I owned. Basically it had been up for sale for 4 years, received an offer which the trustee accepted, but the bank blocked it as it would have left a very small balance in the mortgage. I have since surrendered the property to the bank, who have now sold it for less than the offer they turned down originally....but thats another story!

For a period of 9 months, my trustee agreed that I didn't need to pay my monthly contributions while I struggled to pay the mortgage and rent on my new place, which was a great help and weight of my mind. My question is, do you think this will extend the term of my trust deed, i.e. add 9 months before it completes, or would they have assessed my contribution as 0.00 during that time as my expenses left zero wiggle room?

I was due to make my last contribution this September, but now have the fear that this will drag on into 2020! : (

Porcupine
Advanced Contributor

211 Posts

Posted - 16 May 2019 :  16:51:20  Show Profile  Reply with Quote
Usual practice seems to tag the payment holiday period onto the end of your Trust Deed...... So they'll extend TD to cover the missed payments......
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TDA (Debt Adviser)
Trust Deed Expert



12920 Posts

Posted - 17 May 2019 :  09:03:03  Show Profile  Reply with Quote
Hi Stumbledoor.

I'm afraid this is one of those questions where the only useful answer is going to come directly from your own trustee.

They do have to consider the interests of your creditors. If the amount paid into your trust deed has been less than the creditors originally agreed to, there must be some prospect of an extension.

Equally, if the change in circumstances is seen by your trustee as having been out of your control, there might be a little more flexibility.

Best to ask your trustee directly so that you know where you stand.


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Kevin Mapstone
Trust Deed Expert



3716 Posts

Posted - 17 May 2019 :  13:51:28  Show Profile  Reply with Quote
I'm interested to know the reason you were continuing to pay the mortgage, Stumbledoor. That wouldn't normally be necessary unless you were still living there.

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Stumbledoor
New Member

3 Posts

Posted - 17 May 2019 :  19:03:15  Show Profile  Reply with Quote
With hindsight, I wish Id stopped paying the mortgage sooner Kevin. That is the length of time the whole process took. First the trustee accepted the offer from the purchaser, agreed an exchange date, then after I secured rented accomodation and moved out, the purchaser reduced their offer by 4k. Although the Trustee agreed to carry on with the sale they then needed the banks permission to sell with a very small amount of negative equity. It was then delayed further negotiating with the bank carrying out their valuations, making their decision, appealing their decision etc. I was advised to maintain my payments until the sale could go ahead or until, as i ultimately did, I surrendered the property. In the end, the bank have sold it for less than the offer my trustee originally had leaving me me with another 7k of debt hanging over my head. So the whole thing has left a very bitter taste in my mouth. Trustee was very supportive throughout the whole thing though, and Ive submitted a complaint to the mortgage company.

Thank you for your answers, I've bit the bullet and emailed the trustee today to find out when the Trust Deed will complete. Its better to know...even if it will be longer than expected.

Edited by - Stumbledoor on 17 May 2019 19:05:20
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