What happens if you are more than 30 days late on your mortgage?
It is never a good idea to miss a repayment on your mortgage. While this is the case, life does happen! The average mortgage of a house in Australia is thirty years. Anything can happen in thirty years including a loss of income. If a sudden loss of income has affected your life, it is best to reach out to a home loan expert or officer at your lending institute for options.
However, once a repayment is missed, you should expect to receive a detailed letter in the main highlighting the exact amount owed and the due date. Usually, this letter also states a warning of what can happen if a repayment is not made for the total amount. There are options though, so legal troubles do not happen!
When you do not make changes to your mortgage and stop repaying the loan, it is likely that your credit score will drop. This is problematic since it is harder to raise a credit score, than it is to lower one. The chances that another mortgage lender will agree to let you borrow money is less likely once you receive a warning and a ‘ding’ on your credit report for missing repayments.
More Than 30 Days Late on a Mortgage Conclusion
When you can’t make a repayment on your home loan, immediately call a financial advisor or repayment expert in your lending institute. They have the information that can help you with your unique situation. Without official and approved help, it is likely that your credit score will drop significantly.