10 Aug 2022

Can a bank take your house?

Banks and Homes

When you sign a mortgage agreement with a lender, according to the agreement, the lender can sue or take your home if you do not make repayments as stated in the contract. There is a minimum repayment due every month or fortnight. If you constantly miss the repayments and owe a lot of money on your loan, it may force your bank or lender to take your home. Banks cannot take your home randomly. They need to go to court and ask for it.

Banks will repossess values like cars and homes that are on loan if you cannot repay them. It is a good thing to check in with mortgage lenders if a situation occurs. Life happens unexpectedly and sometimes there is nothing you can do about it. However, mortgage lenders have programs that can assist you. 

For example, here at Mortgage House, we know that things can happen, and can provide financial relief by freezing or skipping at least two mortgage repayments. This is a temporary solution, but it can assist you in the meantime until you figure out another way to repay your loans. Mortgage lenders go to court and take possessions to get their money back as agreed. However, if you owe more than what the item is worth, you can get sued by the bank. 

Banks and Homes Conclusion

In conclusion, banks can take your house if you do not follow the contract as agreed. To decrease the chances of this, always schedule automatic payments and speak with a mortgage lender whenever a financial situation occurs, and it is hard to make a complete repayment.

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