Can a bank sue after repossession?
Losing your home when you have stopped repaying a mortgage, is the least of your worries. As soon as you sign a contract between you and the bank or lender, this is a legally binding agreement that either party can not break. If you are not repaying your loan on time, the bank can take away the property. A bank can also sue even after repossessing the items under the contract. If you still owe money after the loan item is repossessed, the bank or lender will go to court and sue you.
Sadly, sometimes the value of your home or car drops and is lower than the loan is worth. This can cause confusion and financial issues. However, consider that a bank or lender will always contact you before it gets this bad. If you are having trouble repaying your mortgage, there are many ways and financial programs that can assist you. For example, there are non-profit organisations throughout Australia that help individuals and financial crises with their rental or mortgage payments. If you do not feel comfortable or do not qualify for these programs, you can also speak directly with a mortgage lender.
Here at Mortgage House, we understand how confusing mortgages and dealing with banks can be. We make the process as easy as possible by providing all the information necessary. Things can happen which will delay your monthly repayment, we have programs that can assist you in skipping or freezing repayments for up to 2 months.
Bank Sue Repossession Conclusion
To conclude, a bank can sue you even after repossessing your items. You will always have a heads up when this will occur. For example, you will get a notice to vacate letter on your door and in your mail detailing the exact date you have to leave and if there will be further action upon you.