Where to go when You Need Help Making Mortgage Repayments

The prospects of losing your home to a mortgagee sale can be scary. Maybe you are facing financial hardships because you lost a job, or had an unforeseen issue, like loss of business due to pandemics like the coronavirus outbreak. Perhaps you are one of those rare customers who took a home loan that was just not the right fit.

Whatever caused you trouble, it’s helpful to know where you can go to get help.

Below are suggested places where you can reach out and get the necessary help.

First, Do You Understand Your Mortgage?

It may seem a little odd to ask this question at this stage, but do you know the kind of home loan you have? Do you know whether the mortgage payment will fluctuate? Or whether the payments will reduce with time or remain steady throughout the repayment period?

If you can’t tell this by the mortgage documents that you received from the lender, reach out to a bad credit mortgage broker and get help.

|The broker will help you understand the home loan and its structure as well as where you can go for help.

Speak to your bank or lender

When you incur financial difficulty which could jeopardize your mortgage payments it is essential that you start by going straight to the lender.

This may be the last place you want to be because of the embarrassment. But it’s not new and it’s certainly nothing to be ashamed of as everyone experiences hard times.

You should go first to the lender since it’s the only place where you can make a hardship application. But that can only apply if your home loan is not in arrears.

If you are already in arrears, you can look for non-bank lenders for some form of financial assistance for home loans.  It helps a great deal to have a bad credit mortgage broker by your side when going through these.

 

Reach Out to a Bad Credit Mortgage Broker

Mortgage brokers are excellent financial advisors. They don’t just confine their advice to home loans but can give you valuable all-rounded information concerning your finances.

That means a bad credit mortgage broker can help you work on your budget, and help you make sufficient provisions for home loan payments. When you want to figure out an ideal home loan and repayment plan, reach out to a mortgage broker. It’s not just a matter of punching in figures on an online mortgage payment calculator.

You must factor-in other home-ownership-costs such as taxes and fit them in your budget. Plus, a bad credit mortgage broker will help you find non-bank lenders who can give emergency refinancing deals. If the payments are still not within your reach the broker will help you evaluate the option of selling before things get out of hand.

 

Reach Out to a Lawyer 

Do you feel like you were unfairly treated by the lender? Or perhaps the discussions with the mortgage broker revealed that the loan was not a good fit for you from the onset. You can reach out to the Banking Ombudsman Scheme and file a complaint. Better still, reach out to a lawyer who can guide you through a legal process (which may involve courts) to reverse or order for a revision of a mortgage payment program.

 

Save your home from going to a mortgagee sale. Reach out to a bad credit mortgage broker and get help in making mortgage payments.

What to Do When You’ve Lost a Job and Can’t Pay the Mortgage

What happens if you no longer have an income but have bills to pay? That’s not a distant thought especially now that the world is dealing with the biggest economic threat yet – the coronavirus.

In New Zealand, tour operators who handled over 50,000 Chinese tourists last February are grappling with significant income losses. Staffers in these establishments are facing imminent job losses. Missing out on your mortgage payments can be a stressful thought. After all, it’s often the first step to a downward spiral that ends up with a mortgagee sale.

But you are not helpless even when dealing with the loss of employment. There are many options to help you weather the storm.

Read on and find out more about what to do when you’ve lost a job and can’t pay the mortgage.

Contact the Lender

Losing your job doesn’t mean that you should hide from your creditors, especially the mortgage lender. Instead, you should reach out to the bank and explain your situation. Most banks will request that you fill out a statement of status. From this, they can guide you through various options for handling mortgage payments when facing financial hardships.

But that’s only if you’re not already in arrears.

If you’ve already missed a payment or two, consider looking for alternative financial assistance for home loans to help you get through the crisis.

These solutions may only provide temporary relief, but they can buy you precious time to weather the storm.

Consider a Mortgage Holiday

One of the options that a bank would give you when facing hardships, is a mortgage holiday. This is a temporary suspension of mortgage payments to enable clients who experience financial hardships to weather a storm. The holidays can span between three and 12 months. However, during the ‘holiday,’ interest continues to accrue. Thus when you resume payments, your mortgage bill will be bigger.

Plus, mortgage holidays are often short and there’s no guarantee that you’ll have found another job by the time it expires. It could land you in more trouble.

 

Look for Alternative Financial Assistance

Losing a job is not funny nor exciting. It can be downright depressing. Unfortunately, mortgage payments, and many other bills, do not relent.

You must reach out and find creative alternative financial assistance for home loans. It may save your home from going to a mortgagee sale.

Also, consider raising cash creatively as you negotiate for an alternative deal.  You could rent one of the rooms at your home and cut down your expenses. These moves will go a long way in helping you to weather the storm.

What Happens if I Can’t Pay Your Mortgage?

Taking a mortgage is a big financial move, but it’s also exciting and a dream every Kiwi craves to achieve. All the flashy ads on websites and other media, plus conveniently placed home loan payment calculators may make it seem like an easy journey.

 

But the reality of making consistent payments every month or fortnight for decades is not as easy as it’s often portrayed.

Everyone goes through some financial turbulence in life. What if you can’t pay your mortgage?

Will the lender mortgagee sale your home?

Here’s more about what happens if you can’t pay your mortgage.

 

Missing a Mortgage Payment Isn’t Like Defaulting on Rent

Not to downplay how important it is to stay up-to-date with your rent payments, but the repercussions of missing a rent payment are not as dire as would be defaulting on your mortgage payments.

Each time you’re late on the mortgage payments, you are flagged as a likely defaulter. A missed mortgage payment also severely impacts your credit score and limits your access to other forms of credit.

The lender will call you and request that you normalize the loan within the shortest time. However, if you are not responsive, the lender will take debt recovery measures and eventually mortgagee sale your home.

Sounds like a grim future?

Read on and find out what each of these steps entails and how you can avoid a catastrophe.

 

Lender’s Will Requests You to Regularize Your Mortgage Payments 

Missing a single mortgage payment will not trigger the debt recovery process. Lenders don’t like it. So they try to amicably restore your loan or settle it differently. The lender will most likely reach out to you and request you to prepare a statement of position. A good mortgage broker can help you with this and help you when talking with the lender.

During the discussions, the lender will seek full payment of all arrears and that you continue to make payments.

However, if it’s clear from the statement that you are experiencing an income dip due to hardships, you can make a hardship application to your bank. Each lender has a unique way of handling such an application. The process at ANZ is not the same as HSBCWestpac or at Kiwi Bank.

A hardship application only applies when your loan is not in arrears. But in this case, you may have missed a couple of payments. It is essential that you urgently seek financial assistance and remain responsive to the lender to save your home from going to a mortgagee sale. A trusted mortgage broker is an excellent person to have by your side.

 

The Lender Will Issue a Letter of Demand

If for any reason you fail to agree to missed mortgage payments, the lender will issue a letter of demand. The letter will outline the value of missed payments, fees, and penalties as well as any amounts required to make the mortgage regular. This is also the first step in formal debt recovery.

It’s a good idea to reach out to a good lawyer and mortgage broker at this point who can help you with a mortgagee sale.

 

The Lender Issues a Notice Under the Property Law Act (2007)

Lastly, if you are still stuck with the same lender and can’t find financial assistance to take care of the missed mortgage payments, the lender can serve you with a Notice under the Property Law Act (2007) and trigger the mortgagee sales process.

You need to urgently stop the mortgagee sale process. Fortunately, you still have the option of looking for emergency refinance.

A mortgage broker for bad credit can help save your home from going to a mortgagee sale.

Taking a Mortgage Holiday? Is it worth it?

At the height of the 2008-2009 financial crisis, former Prime Minister John Key rooted for banks to give homeowners up to 12 months of mortgage holidays. It seemed like a great idea. But Martin Hawes’s rebuttal described mortgage holidays as “holidays from hell.”

The current coronavirus outbreak is expected to create economic shocks that will impact many companies. Tour operators are looking at an income loss of $180 million per month which comes from Chinese tourists. This is bound to have a ripple effect on businesses and employees.

 

If you don’t have some savings stashed up somewhere, you may need financial assistance or consider a mortgage holiday.

Are you planning to take a mortgage holiday?

Here’s a deeper look at whether it’s a break worth taking.

 

What is a Mortgage Holiday and Who Needs It?

Just as the term implies, a mortgage holiday is a break from making your regular home loan payments. Most lenders set the break between three to 12 months. It’s a temporary ‘suspension’ of your mortgage payments but hardly ‘a get out of jail free card.’

Mortgage holidays are often included as part of ‘bailout’ plans by lenders to homeowners facing temporary financial hardships. The Banking Ombudsman Scheme also recognizes them as such. But it adds a note of caution to whoever is enticed by such an option, that it may not be a great form of financial assistance.

Mortgage holidays can serve as a temporary relief for but they don’t just serve your interests.

Here’s how.

You’ll Pay the Mortgage for Longer

A Mortgage holiday, just like any other holiday, is not permanent. When you resume making mortgage payments, the loan term will be longer. Worse still, interest continues to accrue even when you are on “holiday.”

So you’ll not just get back to a stretched mortgage term but also a bigger loan!

 

You’ll Pay More Interest

Back in 2009, the Herald calculated the extra interest payments on an NZ$250,000 home loan due to a mortgage holiday (the rate used was 8%) and came up with a jaw drop figure of NZ$28,000. You may be thinking that the rates were off the roof at that time. But the basics do not change.

When you take a mortgage holiday, the bank suspends the mortgage payments but the interest still accumulates! But that’s not all. Since the loan term is longer, the mortgage also accrues more interest over the elongated term.

So you’ll be paying more for longer.

If you’ve been having a hard time trying to save for a rainy day, chances are it’ll even be harder making bigger mortgage payments.

 

How to Use the Holiday Wisely

Mortgage holidays are not fancied even by the banks. For instance, Kiwi Bank says that it should be the last resort. ANZ Bank, which commands nearly 30% of the marketscrapped standard mortgage payment holidays. The Bank now only considers applications from those who are:

  • Unable to make mortgage payments for a short period.
  • Need temporary assistance with repayments.
  • Are certain about regaining their financial footing.

Mortgage holidays are reserved only for brief financial hardships. More importantly, you should have a concrete plan to resume payments. But that’s easier said than done.

 

If you foresee financial headwinds, perhaps alternative financial assistance for home loans could work for you. Talk with an experienced mortgage broker first. You’ll get invaluable guidance on options perhaps you’re yet to explore.

Is Selling the Property a Good Option When Facing a Mortgagee Sale

Facing a mortgagee sale can be a stressful situation. You may have not been able to stop the entire process from the time the lenders issued you with a demand letter and PLA Notice. But many lenders can allow you the option of putting the property on the market with a formal designation “Subject to Lender’s approval.”

Is this a good option when you are facing a mortgagee sale?

Read on and see how selling the property affects you.

 

How the Sale Works

When you have a mortgage, the lender retains charge over the title until the entire loan is settled according to the contract. Such a title can only be transferred by the lender. By selling the property to recover the debt or a mortgagee sale, the lender exercises its authority over the title.

 

However, mortgagee sales cost the lenders administratively and often attract bargain property hunters who can drive the sale price down. Also, the stigma of mortgagee sales can be embarrassing to the customer.

 

Lenders can give you the leeway to look for a potential buyer, and negotiate for a price without the “mortgagee sale” label hanging over your head. In such a case, once you have a deal with a potential buyer, you should take it back to the lender for approval. There’s no guarantee that the lender will agree to the deal but a successful sale would translate to the lender saving on administrative costs and you’ll avoid loads of embarrassment.

 

But that sounds like a fairy tale. The truth is, it’s hard to find a fair buyer when the bank is breathing down your neck. It may be better for you to get an emergency refinancing solution to buy time and some peace of mind.

 

There are many benefits to taking this route.

 

It Protects Your Credit

By the time a lender issues a Notice according to the Property Law Act (2007), your credit score must have reduced significantly. Repayment history and the nature of credit are significant components of scoring models. However, urgent refinancing helps you to restore your credit dignity and avoid a mortgagee sale.

A record of a mortgagee sale record on your credit report has a bigger impact on the credit score and would just torpedo your credit score to the bottom. Plus, there’s no guarantee that a mortgagee sale would fetch a good price and cover your entire loan and expenses. So you may end up bankrupt.

Emergency refinancing before you sell the property, on the other hand, gives you a chance to get back in the “credit game.”

 

It Gives You More Control

When a lender engages the process to mortgagee sale your property, the lender can unilaterally appoint a valuation expert, a marketing agent, and evaluate the offers. The home could also be sold via auction. The lender is not obliged to seek the best market rates. Also, when the lender gives you leeway to sell they can veto the deal.

This leaves the homeowner with few options as to how the property is sold, and at what price. In hot property markets such as Auckland, bargain property buyers look for such opportunities to cash-in.

On the other hand, urgent refinancing before you sell the property gives you more control. You can evaluate each offer against market rates.

If I Don’t Pay My Mortgage, Will the Bank Sell My House?

When you get a mortgage you become a homeowner. However, the lender retains charge over the title of the property until you settle the entire loan according to the contract. The bank can sell your home if you don’t pay your mortgage. It’s called a mortgagee sale.

 

But banks and other mortgage lenders don’t like to take this route. It’s bad publicity, and it sends a negative vibe to existing clients. Most lenders would rather go through many rigorous legal steps to avoid a mortgagee sale or to give you a chance to resume making mortgage payments.

 

Here’s a look at what lenders do to avoid mortgagee sales and what happens when you fail to pay the mortgage.

 

Lenders will Ensure the Loan Meets Your Needs

It’s not easy to make regular mortgage payments each month or fortnight without fail for decades. You must have a compelling motivator. This is why banks want to ensure that the mortgage fulfills your needs. This will be your motivation to keep up with the mortgage payments.

The bank will ask a few questions including:

  • How much you want (market value of the home).
  • Whether you would want to protect the home through products like mortgage insurance.
  • How you plan to make payments? If you want to make regular payments of similar amounts throughout the loan term or if you may occasionally want to make lump-sum payments.

The bank will also review your income and expenditures to ensure that you can meet the mortgage payments, including applicable fees, and pay your other regular bills without straining your finances. However, each mortgage application is determined on its merit.

Banks are thorough when processing mortgages and follow the responsible lending code. But what happens when circumstances change and you fail to pay the mortgage?

 

The Bank Will Engage the Formal Process of a Mortgagee Sale

If you are unable to pay your mortgage, the bank is expected to treat you with respect. But that doesn’t mean they will be easy on you.

The intention of the bank is first to make sure that you regularize the account. Secondly, the banks give you a chance to discuss any underlying hardship that may have caused the default. There are various options and solutions in cases of hardships.

 

When you consistently fail to pay, the bank will issue you with a letter of demand and a mortgagee sale may be inevitable.

 

Don’t wait until the bank engages the formal process for a mortgagee sale. By the time such a decision is made the late payments and missed payments would have negatively impacted your credit history, attracted penalties and inflated the debt tremendously. You may need extraordinary financial assistance to avoid a mortgagee sale.

Urgently reach out to a trusted mortgage broker to help you find urgent refinancing and save your home from going to a mortgagee sale.

Having Trouble with Mortgage Payments? When to Consider Changing to Another Home Loan Lender

If you are having trouble paying your mortgage it could mess up your credit rating and land you in mortgage trouble. The possibility of losing your cherished home can be frightening and stressful.

You must find a remedy quickly and restore your finances in order to resume regular mortgage payments.

But sometimes the bank just doesn’t understand your situation.

Perhaps the financial storm has lasted longer than you expected. Or maybe the mortgage no longer fits your current lifestyle.  Should you consider shifting to another home loan lender?

 

Read on and find out how you can salvage the situation and change the lender.

 

When the Mortgage Doesn’t Suit Your Needs

Mortgage lenders in New Zealand must follow the Credit Contracts and Consumer Finance Act (CCCFA). On the other hand, mortgage brokers must act with “skill and care” guided by the Financial Advisers Act. This is to ensure that the loan is affordable and that you can “make your loan payments without suffering substantial hardship.”

 

However, your circumstances may change in the middle of the mortgage term. It may be a strain to continue paying your mortgage in your current status.

 

When a mortgage doesn’t suit you, you have an option to reach out to the lender and restructure it. But, this only applies when the mortgage is not in arrears. Also, you may have to contend with breaking fees.

If the loan no longer suits your needs, and the bank is unwilling to understand, urgently reach out to a trusted mortgage broker.  You need immediate help to plan your finances and take look at options such as emergency refinancing.

 

Refinancing Will Help You Settle Other Loans

One of the options that will be available to you when discussing with the mortgage broker is refinancing. You can refinance within the same lender – when you borrow against the home’s equity. Or it can be with a different lender. That is when a different lender “buys-off” the mortgage.

The bank may be unwilling to refinance your mortgage especially if you’ve missed a couple of payments.

Before you consider refinancing with a non-bank lender reach out to a trusted mortgage broker to give you an unbiased view of what to expect according to your circumstances.

If you have been servicing the mortgage for a while, and you are facing financial headwinds, emergency refinancing could give you the lifeline you need.

 

When to Shift Lenders

Emergency refinancing comes may come with a fair share of costs and technicalities. It’s advisable to walk through the entire process with a trusted mortgage broker and legal advisor. It is also recommended that you seek an alternative lender to take up the mortgage once you’re are back on your feet.

Lenders in New Zealand have different criteria and sometimes the best options for saving your home could be in non-bank mortgage lenders. However, such a decision should be guided by an objective assessment of the costs versus the benefits of each option.

There may be no cash savings. But a different lender could give you more flexibility or better rules. This could be what you need to avoid a mortgagee sale.

Whatever’s causing you to have trouble paying your mortgage, emergency refinancing can help you keep the home. Just reach out to a trusted mortgage broker to help you through the process.

Financial Assistance for Mortgage Repayments

I like the old Maori proverb, Ma whero ma pango ka oti ai te mahi – With red and black the work will be complete. It doesn’t just remind us of how it is important to cooperate to reach a goal, it tells us how we can use different resources to attain a goal.

Not all Kiwis can afford to purchase a quarter-acre piece of paradise in the suburbs with one or a few payments. Mortgages provide an essential route for Kiwis to afford homes.

But traditional mortgage lenders, such as banks, may have difficult criteria and you may find yourself in mortgage trouble frequently.

 

If that’s your story it may be worthwhile to look at non-bank mortgage lending.

Who are Non-Bank Mortgage Lenders

According to the Reserve Bank, non-bank lenders are institutions that have been licensed to offer loan products but do not take deposits. That strikes off banks, building societies, and credit unions.

Since these institutions don’t rely on the public’s savings to lend, they do not need to hold a banking license. But that does not mean that non-bank mortgage lenders are under any less scrutiny or regulation by the Reserve Bank.

On the other hand, by the nature of their business models, these lenders may not have the financial muscle as banks, but their flexibility is incomparable to banks. Perhaps this is the reason why more Kiwis are trusting them. As of 2018, the lenders had grown their share in the home loan market to NZ$2.5 billion, a staggering 27% growth.

 

What kind of financial assistance is available?

Apart from the standard home loans as you would be familiar with from the banks, non-bank mortgage lenders offer more flexible terms and extraordinary home loans like:

  • Low doc home loans
  • Split-rate mortgages.
  • Bad Credit mortgages

The bad credit mortgages are just as the name implies. If you’ve missed a couple of payments on your mortgage. Or maybe you are facing a mortgagee sale. You can get urgent financial assistance on your home loan, even with a bad credit record, from a non-bank mortgage lender.

The lender will charge slightly more to cover for the higher lending risk, but that may be a price worth paying to save your home from going to a mortgagee sale.

 

Why You Should Consider a Non-Bank Mortgage Lender

For starters, when you experience financial difficulty you want a partner who is flexible and can relate with you at a deeper personal level. Unfortunately for banks, their strength and size are also their Achilles. It’s hard to relate with customers on a personal level. Due to their size, banks must comply with a myriad of regulations and adopt ‘controls-based’ structures. On the other hand, non-bank mortgage lenders can adopt a more ‘customer-oriented’ structure and meet a wider range of client needs.

Most non-bank lenders in New Zealand are also customer-owned. Thus, they are not driven by profits and unquenchable shareholder demands. Instead, customers (who form the ownership) mark their values, mission, and objectives. With this in mind, they can offer competitive rates, and fees as well as less stringent mortgage qualification criteria.

If you are experiencing mortgage payment troubles, reach out to your lender and discuss how you can save your home from a mortgagee sale. If you are dealing with a bank and they seem not to understand your situation, talk to a trusted mortgage broker. They will help you get financial assistance from a non-bank mortgage lender.

Tips to Help You Avoid Defaulting in Your Mortgage

mortgagee sale process information help

The road to a mortgagee sale often seems like an unstoppable downward spiral. If you do not urgently seek financial assistance, you may find yourself unable to meet your obligations and lose your biggest investment yet.

Perhaps you’ve lost your job or had a relationship go south. Maybe it’s an illness that forced you out of work or the death of a breadwinner. Financial experts say that a debt spiral, which may lead to a mortgagee sale, is very likely. But it is preventable. The first step, keep up with your repayments and don’t default on your mortgage.

Below are tips to help you avoid defaulting on your mortgage.

 

Reduce the Mortgage Balance Fast

Since you are well-able to meet your mortgage payment obligations, don’t settle for a mundane routine payment every month. You don’t know what the future holds. Strive to reduce that mortgage balance fast.

The average mortgage size for the first time Kiwi Homeowners is slightly over NZ $400,000. An extra NZ $100 each week on your mortgage payment may seem like a drop in the ocean. But, when you pay it more often, it goes a long way in reducing your balance. You can reduce your mortgage balance by:

  • Diverting any extra earnings towards your mortgage payments.
  • Maintaining the same payment levels even if the rates dip.
  • Increasing your repayment frequency, say from monthly to weekly or every fortnight.
  • Reviewing the structure of the loan, say to a revolving credit mortgage, and boost repayments.

 

Maintain a 3-month Mortgage Repayment Fund

Job losses, illnesses, death and break-ups always seem to catch us off-guard. But you can plan for that rainy day. Try and build up a 3-month mortgage repayment fund to help you create a time buffer that will help you absorb the shock and get your thinking cap again.

 

If you’re struggling to plan your finances, you can get help with budgeting.

An income loss is a huge emotional blow. It would be more devastating if you are served with a PLA Notice and put on the mortgagee sales list shortly after.

So, guard yourself against the worst.

 

Don’t Hesitate to Inform the Lender 

Don’t wait until it is past the payment date of your monthly mortgage bill. The first default could be the stumbling block that leads to a mortgagee sale. Instead, inform the bank or lender about the financial dip as soon as possible. Let the lender know the circumstances that led to it and:

  • Why you cannot meet your mortgage payment obligations.
  • You are willing to continue making payments.
  • What you can afford for now.
  • Ask for help either as a payment break or by restructuring your mortgage.

There are many ways the bank or lender can come to your aid. Plus, if you take up this step before you fall into arrears, the bank or lender is obliged to work out a solution with you.

These tips will go a long way in keeping you from defaulting in your mortgage and the prospects of a mortgagee sale at bay.

What to Do If Your Bank Wants to Mortgagee Sale Your House

When a bank lends you money to buy a home, the bank secures a charge over the property. Upon full repayment, the lender discharges the property. However, if you fail to make payments, the lender can take possession of the asset and sell the property to settle the loan.

Mortgagee sales are often stressful. It is not in the best interest of a lender but a last resort to recover a loan. This is partly why lenders have a robust screening process and in many instances propose various insurance products.

Nonetheless, there are instances when push comes to shove, and a mortgagee sale is inevitable.

Below is a brief outline of the mortgagee sale process, and what you should do.

The Recovery Process

The lender will not take your property to mortgagee sale your home after missing just one payment. Lenders are obliged to go through a rigorous process of requesting, negotiating and demanding payments. Consistent non-payment will see the lender first write a letter of demand and follow up. If you don’t pay, the lender will engage the Property Law Act 2007, and serve you notice.

 

What to Do if You Get a Property Law Act (PLA) Notice

If you’ve received a PLA notice, it means that you have not been servicing your mortgage satisfactorily for a while. It should not be a surprise. Nonetheless, it is very distressing.

A PLA notice contains details of the default and a demand for payment of the mortgage by a specific date. Lenders serve PLA notices in person. However, if you are unreachable, the lender has the option of making it public in a newspaper.

If you fail to pay by the stipulated date, the lender has the right to repossess and sell the property to recover the debt.

But the situation is not beyond salvage. Here’s what you should do.

 

Don’t Ignore the PLA Notice

Upon receiving the PLA notice, the threat of losing your hard-earned home is real. So, don’t ignore or belittle the damning situation. Take action.

It is advisable to first seek legal advice from a suitably qualified professional e.g. an experienced lawyer or legal representative. She will explain what a mortgagee sale means, the legalities of the mortgagee sale process, and the lender’s rights as well as your rights. Under the Land Transfer Act 2017, you can modify the terms of the mortgage.

Reach Out to a Mortgage Broker and Review Your Financial Situation

Mortgagee sales are an outcome of home loans gone bad. Therefore, it makes sense to include a mortgage broker in your list of people to consult. After all, they are the mortgage experts.

Discuss the circumstances of the current loan exhaustively and lay bare your financial position. It will give the broker tools to craft a rescue plan.

 

Hatch a Bespoke Mortgage Rescue Plan

Armed with information about your lender, the loan and your financial position, the broker will work with you to hatch a mortgage rescue plan that fits you.

A mortgage rescue plan is not an easy way out of a mortgagee sale. But it is workable and will be your best chance to salvage the situation.

 

Contact the Lender and Offer Solutions

Although the lender is not obliged to accept the proposed mortgage rescue plan, remember their primary intent is recovery, not to mortgagee sale your home. Lenders will often pay more attention and consider solutions offered via professionals such as mortgage brokers or lawyers. A listening counterpart is crucial for fruitful negotiations towards stopping the mortgagee sale.

 

Stick to the Rescue Plan

When you agree with the lender, and mortgage broker or lawyer over the recovery plan, set it in motion and stick to the plan. Your home and sanity depend on it.