Your home loan going into default is understandably one of the most stressful and difficult situations that a homeowner can go through. Often, home loan defaults are the result of a disastrous or major life event. However, the issues that cause mortgage arrears can be varied. Common events that cause mortgage defaults include divorce, loss of job or income, illness, failed business, or death. Other debts, such as credit cards and personal loans can also mount and cause mortgage and other arrears.
The good news is mortgage companies focus on providing loans, not taking properties from those in financial hardship. They will try to first work with those who have mortgage arrears, to help them get back on track.
Knowing what is most important if your home loan is going into default, can help you begin a process of working towards a solution. If you need home loan default help, you can also speak to a broker who specialises in helping people just like you.
The first thing to do is to get the facts. Work out how long your home loan has been in arrears.
A lender may only allow a mortgage default to last for a few months before proceeding to foreclose on your property. While it is not their priority, it is their right. The longer you are in default, the more urgent that action is. Usually the sooner you get help from someone who can advise on your situation, or the sooner you contact your bank, the better.
To clear a mortgage default, you will normally have to pay all amounts that have been missed. Some companies are willing to work with you to help you make the payments over an agreed period. This may require a larger initial payment on amounts in arrears, with increased monthly payments to make up the difference.
Although this will add to your financial burden, it does provides a great way to get out of home loan default if you have the means available. Ask your lender to know the exact value of your home loan default. With any legal costs and other expenses involved, knowing the exact cost will help you form a payment plan with them that is manageable.
The clock is ticking once your home loan goes in to default. Most people generally have three to six months before legal action is taken to seize their property.
Speak with your lender to find out how much time you have. For any debt older than three months, your lender may require the full debt to be recalled. This means you need to pay your whole loan, and not just your arrears. Usually this is done by refinancing. The best way to determine what your options are, is discussing things with your lender.
If you are feeling overwhelmed, recruit the services of a professional who works with Home Loans in default.
They could help you negotiate a satisfactory settlement for your home loan. Whether it involves negotiating with your lender to keep your debt, or to refinance to another company.
Contact Loansaver Network today on 1300 796 850, to see how we can provide you with professional home loan default help.