What happens if you are a month behind on your mortgage?
Missing a mortgage repayment does not come without consequences. While it is understandable to make mistakes and forget dates, when you sign a contract with a lender, there are certain clauses that must be filled, including timely repayment. Keep in mind though that, about a third of Australians are a month behind on their mortgage repayments. It is common, but should be avoided as much as possible.
Many mortgage lenders offer online notifications. You should receive updates and notifications about the status of your home loan and the missed repayment. In the preceding thirty days, a letter is mailed to the address on file. The letter states how much is missing and gives a warning. After thirty days without a response, mortgage lenders can use legal action against you.
Falling behind on mortgage repayments is dangerous because mortgage lenders are forced to send information and updates to the Australian credit bureau. Missed repayments lead to a low credit score. Once you pay your late repayment and the current month’s repayment, it is necessary to speak with a loan officer. If a hardship is causing missed payments, applying for hardship help through your lending institute is an option.
Late Mortgage Conclusion
With the many home loan repayment options, it is best to avoid skipping or missing a repayment. The moment you do, your lending institute can start the process to file legal action since there is a breach of contract. Mortgage House experts are ready to assist and provide fast solutions to aid in your repayment worries.