Real Life Home Loan Arrears Case Study

A Real-Life Home Loan Arrears Case Study

Scott And Linda were having trouble paying their home loan. Over time it went into arrears, and they were worried about defaulting on their mortgage. They did not want to lose their home and did not want a bad credit rating. However, they could not find the answers to their mortgage arrears questions.

Previously they had a successful business, but their industry changed, and the profits quickly declined. The only solution they saw was to sell their business, and that is what they did. However, they had bad debts, such as tax debts and superannuation payable to ex-employees.

Understanding The Problem

When it came to their home loan, they had not made consistent payments each month since selling off their business. Once their company sold, they got jobs to pay for their daily lives and also to pay off the debts, including mortgage payments when possible.

However, this was not the end of the issues they were facing. Creditors wanted money to paid sooner than they were capable, and they were now two months behind on their mortgage. With threats of legal action from business creditors and their debt collectors, they felt it was more important to pay those debts off first. Scott and Linda could not see a way to keep up and were referred to us by a friend of theirs for help.

They were in a quite dire financial situation. With business creditors screaming, and their home loan lender threatening foreclosure, their stress levels were predictably high.

Finding The Solution

The first step was to make a thorough assessment of their situation. We compared existing debts with the new amount of income they were receiving from their new jobs. They had enough income coming in over the next months afford to refinance their mortgage, including other debts, with a debt consolidation loan. They just needed more time.

First, we negotiated terms with their home loan lender. They agreed to put repayments on hold and not take legal action until we could settle a refinance of their mortgage. Next, we sourced a lender who would accept the loan, including their mortgage arrears and also consolidate the business debts they needed to pay off.

Taking The Best Action

Loan Saver helped save their home and various lenders legal action. This stress would most likely have taken a tremendous toll on their relationship too.

Solutions to mortgage arrears exist. Having someone who can understand the problems and find realistic solutions quickly is often the difference between property foreclosure and other adverse action.

Hers is what they said after the new loan settled and they could afford their repayments again.

Achieving The Result

Scott– "Our stress levels were through the roof. We were planning kids next year, and well, that was not on the cards. Loan Saver helped us out enormously. Even though our choices were limited, Loan Saver was easy to work with; everything was efficient and simple. We kept our house and will have a great place to raise our kids…."

See our Mortgage arrears page for further information on mortgage arrears, or contact us at 1300 796 850 to get the solution started.

Why Work With The Loan Saver Network ?

  • “The new loan got us our of trouble and the rate isn’t too bad either. The best thing is that we have a plan, we saved our house and we’ll be back to a traditional lender next year. We couldn’t be happier.” - Scott & Lina,, on their new loan
  • “Our loan settlement went very well, there were a couple of hiccups along the way which were handled with ease. Loan Saver’s (Colin)communication was fantastic, they explained the process and we knew exactly what we needed to do.” - Scott & Lina, on their experience