A Real-Life Home Loan Arrears Case Study

Introduction

Scott and Linda were struggling to keep up with their home loan payments. Their loan went into arrears, and they feared defaulting on their mortgage. They did not want to lose their home or damage their credit rating. However, they couldn't find the answers to their mortgage arrears questions.

Background

Scott and Linda previously ran a successful business. However, changes in their industry led to a rapid decline in profits. The only solution they saw was to sell their business. Despite selling, they were left with significant debts, including tax debts and superannuation payable to ex-employees.

Understanding The Problem

Since selling their business, Scott and Linda had not been able to make consistent home loan payments each month. After selling their company, they found new jobs to cover their daily expenses and pay off debts, including their mortgage when possible.

However, this did not resolve all their issues. Creditors demanded payments sooner than they could manage, and they fell two months behind on their mortgage. Faced with threats of legal action from business creditors and debt collectors, they prioritized paying those debts first. Feeling overwhelmed, Scott and Linda sought our help on a friend's recommendation.

Their financial situation was dire, with business creditors pressuring them and their home loan lender threatening foreclosure, leading to high stress levels.

Finding the Solution

Our first step was to thoroughly assess their situation. We compared their existing debts with their new income from their jobs. They had sufficient income over the coming months to refinance their mortgage and other debts with a debt consolidation loan. They just needed more time.

Negotiation with the Lender:
- We negotiated with their home loan lender to put repayments on hold and delay legal action until we could refinance their mortgage.
Sourcing a New Lender:
- We found a lender willing to accept the loan, including their mortgage arrears, and consolidate their business debts.

SUBMIT AN ENQUIRY

Taking the Best Action

Loan Saver helped Scott and Linda save their home and avoid legal action from various lenders. This intervention likely prevented significant strain on their relationship as well.

Solutions to mortgage arrears exist. Having someone who understands the problems and can find realistic solutions quickly can make the difference between foreclosure and other adverse actions.

Achieving the Result

Scott shared his experience:

"We were behind on our mortgage and our stress levels were through the roof! We were planning on having 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.

Can Loan Saver Network Help?

If you need assistance with home loan arrears or other forms of specialist finance, work with a professional who can answer your questions. Contact the Loan Saver Network today at 1300 796 850 to see how we can help you.

Key Takeaways:

Avoid legal action due to potential additional costs and higher fees once an account goes to collections.
Obtain multiple extensions as lenders typically seek to recover their money quickly.
Work with professionals to ensure proper loan structuring and approval.
See our Mortgage arrears page for further information on mortgage arrears, or contact us at 1300 796 850 to get the solution started.

Real Life Home Loan Arrears Case Study