Trust Deed - Will I Lose My House?
Thousands of people have struggled for the past 2 years in the mist of the recession and credit crisis. Keeping a property throughout this period has been hard with a hope that there will be a financial recovery.
So, if you are a homeowner, will you lose your home if you enter into a Trust Deed?
Not necessarily in fact it could be the opposite but it does depend on your own circumstances. Your Trustee will be able to establish whether or not you have any equity in your home to release as a part of their initial assessment.
If you do not have any equity in your property, then you will be given an option to buy any future equity from the Trustee, and therefore eliminate the need to re-assess your property’s equity later in the Protected Trust Deed. This is called ‘Ring Fencing’ the future equity.
If you do have equity in your property, then you will be able to discuss with your Trustee the best method for you to give the equity to him. This can be done in several different ways, and the most suitable method will depend on the amount of equity you have.
