When you purchase a property and get a mortgage, the bank or lender has an interest in the property and puts a charge against the title of the property for as long as the loan is outstanding. The lender is obliged to discharge the title once you have paid the entire loan.  

What happens if the debtor or mortgagor cannot fully repay the loan? 

The Property Law Act (2007) gives the bank or lender (mortgagee) the right to “call up” the loan; by way of notice, as payable, the entire principle, interests, and any fees secured by the mortgage. If the amount is not paid by a specified date on the notice, the lender can sell the property and recover the loan. Thus the term “mortgagee sale.” 

If you are in a mortgagee sale situation, one of the most crucial people you must have close by is a mortgage broker. Read on and find out why you must have a skilled broker by your side. 

Brokers Know About Mortgages 

Bankers and other lenders know a lot about mortgages. However, mortgage brokers are a step ahead. They combine in-depth knowledge of different mortgage products and processes. Plus, mortgage brokers in New Zealand are certified for technical competency and registered under the Financial Advisers Act. 

They combine: 

• Technical expertise. 
• Professionalism. 
• Market knowledge 

• A personal touch. 
• Flexibility. 

A skilled broker will not just offer incredible advice on how to manage your finances and structure a mortgage so that you don’t default. He or she is your best bet at developing workable solutions for a good outcome.  

Brokers Have a Broader Understanding of the Market 

Skilled mortgage brokers don’t just know a lot about mortgages products, they also have an in-depth understanding of the market. This is a vantage point for people who opt to work with mortgage brokers. Unlike bankers, brokers are not confined to a limited perspective and can work with more providers and think outside the box. When you work with a mortgage broker, you have the opportunity of receiving a ‘bird’s eye view’ of the market and your options. Plus, mortgage brokers deal with a wide variety of must-have, support professionals such as property lawyers, realtors and registered valuers. 

Brokers Know Where and How You Can Get Financing Deals Even with Bad Credit Rating 

Securing an alternative lender is a vital strategic move when you want to stop a mortgagee sale. 

However, due to the default on the existing mortgage, your credit rating absorbs a heavy blow making it harder to get approval for any loan facility.  

Mortgage brokers deal with a variety of lenders, including non-bank lenders. Brokers can help you secure an excellent deal to refinance your mortgage and get you out of a mortgagee sale. 

Finally, Brokers Have Your Interests at Heart 

When facing a mortgagee sale, representatives from the bank or lender have one thing in mind, to recover the loan. However, mortgage brokers, since they are only intermediaries, can look at the mortgagee sale situation from your point of view. 

Perhaps you encountered financial hardships and there’s little chance of making a comeback. A skilled mortgage broker can help you to decide what the best plan may be, which could include selling the property without the ‘mortgagee sale stigma.’ It gives you a better chance of attracting better prices.  

Act fast and speak to your lender. Reach out also to a skilled mortgage broker. You’ll have a better chance of obtaining a good outcome.