What Happens If I Can’t Pay My Mortgage?
If you realise that I can’t pay my mortgage, speak with your lender promptly. Lenders offer a grace period of 30 days. Once your repayment is late one or two months, you walk into dangerous territory.
Lenders can take your home and repossess it in Australia. In addition to losing your home, you don’t see any of the proceeds. Lenders sell repossessed homes promptly. Their goal is to recoup their losses quickly.
Homeowners who see financial hardship on the horizon can file a hardship form with their lender. Forbearance is another option.
Mortgage House loan specialists examine the homeowner’s circumstances before offering solutions. In some situations, refinancing is the best route to take.
For homeowners whose situation becomes out of hand, selling the property is a good solution. In this case, sell it before you fall too far behind on your mortgage. The proceeds cover the outstanding mortgage amount. Any funds leftover can help you start over.
Lenders remain in the business of lending. They do not aim to become involved in the business of property management. Helping the client overcome their financial hardship helps them too.
Can’t Pay My Mortgage Conclusion
If you find yourself realising that I can’t pay my mortgage, don’t wait. Once your repayment is one day late, the lender considers it in arrears. Most offer a grace period of 30 days. During that period, speak with the lender and options.
Mortgage House is ready to help our clients achieve their financial goals including refinancing a home loan. Contact our loan specialists today.