Home Repossession – It’s a Problem for You and the Bank!
When you are unable to repay your home loan and your bank is proceeding with the house repossession, it is not only you who go through a lot of strain, but also the bank and its officials.
Home repossession is a problem for the Bank because a property can be a long and arduous legal nightmare to them, because of the recently passed financial hardship laws.
Just like you, your bank or lender too would want to avoid the entire Home Repossession process.
If you are undergoing severe mortgage stress, contrary to popular belief, your bank or lender may be the first place you can seek debt help.
With banks in Australia embracing the new financial hardship laws, they are now willing to help you make the repayment process easier when you are undergoing a temporary financial situation.
Work out different solutions with your bank to ease your Mortgage Stress – and maybe avoid Home Repossession?
1) Approach the bank and seek financial hardship assistance, which would give you some relief from the mortgage stress usually for around three to six months.
You can also work out some arrangements with your bank like restructuring your loans, changing loan repayments on an interest only basis, and changing your credit limits.
2) Keep communicating with your bank and be honest about your financial situation, so that they may find some way to help you relieve your financial anxiety and mortgage stress.
They may arrange an alternative repayment arrangement by extending the repayment period and reducing the monthly amount.
3) Refinance your home loan if you can find an affordable repayment scheme, and move your mortgage from the current bank. Refinancing should be done with a lot of care, because you may tend to spend more as soon as you get some mortgage relief. It will work only if you can keep your spending to the minimum, so that you can save enough to repay your loans in full as soon as possible.
Also, many banks want the loan to be up to date before refinancing occurs, which means that all missed payments need to be up to date.
If your problems are only temporary, you have a lot of options to work out your home loan debt with your bank.
Your bank would analyze your situation and recommend the appropriate financial hardship assistance for you.
You can seek the help of an independent financial counsellor to help you get the financial hardship assistance approved by your bank.
If you find that your financial situation is so deteriorated that even your bank cannot help, call us on (02) 8006 0402 or CLICK HERE Now and gain access to a FREE Report – “The 7 Actions Steps you can Take Right NOW when You Can’t Pay Your Mortgage for the First Time!”
Call Property Solutions for Australia NOW on (02) 8006 0402 for a complimentary consultation.