If you’re Behind in Payments, Mortgage Help Is at Hand

Don't Hide

One of the biggest mistakes homeowners make is to try to hide their poor financial situation when they're behind in payments, mortgage help is provided by most lenders who are immediately aware of any missed or irregular payments.

Many banks have teams in place to HELP with your mortgage payments. They are in the business of lending money NOT owning homes. It’s bad business for them to reposess homes. It costs them thousands in legal fees, lost income and more importantly – bad press.

They will do everything in their power to keep you in your home. They just need you to make the call and start asking for help. The sooner you ask the more options available.

Next Steps

Act Now!!

Complete a Budget

Sit down and work out exactly where your money is going (even if you know you’re spending more than you earn). This way, when you talk to your lender, you both know exactly what is possible.

Debt Consolidation

Can you combine some of your loans into one larger but longer term loan on a lower rate. This will help lower your payments and you can start clearing debt rather than just servicing interest.

Modify your Loan

Change the terms of your loan if you can. Extending the term is one of the simplest ways of reducing your mortgage payments. This will cost you more over the life of the loan but its better to cost you more than to default. Use the Mortgage Calculator to see how payments can change or utilise the Debt Consolidation Calculator if you can combine a couple of loans

Interest Only

Often lenders will let you convert to Interest Only. Ok, this means you’re no longer paying anything off the mortgage but at least you’re paying something and it can give you the chance to clear other debts. It may even just minimise your payments (see what they'll be) to give you a chance to sell the property.

Sell Your House

The obvious step to take if you need mortgage help is to sell the house. Is this an ideal choice? Probably not, but do you really have any other option? At least if you put the house on the market you may salvage some equity and it definitely beats defaulting on your loan. If you default, this will register on your credit file and stay with you for years. It will become a nightmare to qualify for a loan again.

No Equity?

If you have little equity in your house, you may be surprised you are actually in a better position when it comes to dealing with your lender.

Lenders will not want the house so are unlikely to proceed with foreclosure. Instead, the lender is going to grumble, but should agree to negotiate some terms to at least maintain some form of payment of the debt. This agreement can drastically reduce your mortgage payments or postpone them entirely for a period of time.

Taking this step can help buy your time to sell the house or come up with some alternative plan for making the payments.

Tried all This?

Speak to debt counselors, as you are heading towards an IVA or Bankruptcy.

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