A mortgagee sale should not be such a distant thought if you are a homeowner in New Zealand. This thought should keep the embers firing the zeal to own a home start hot enough to stay on top of your payments.

But there are times when push comes to shove, and financial headwinds could drive you first into mortgage stress and eventually into a mortgagee sale situation.

Do you need an urgent solution to refinance your troubled mortgage?

Here are the options available for you.

To start with, be clear about this, the only remedy for failed mortgage payments is a full payment. So confine your options to what eventually leads to payment, not postponement. Temporary solutions such as injunctions and stay orders by a court or complaints to any other authority are seldom and are not permanent.

You can opt for a quick sale, liquidate other fixed assets to save your home, or refinance with an alternative lender. Here’s more on these options.

Quick Sale

If there’s no agreement on debt settlement on your troubled mortgage and the process spirals to a Notice under the Property Law Act (2007), you can go for a quick sale and avert the mortgagee sale.

A quick sale is a situation where you sell the property in the window between receiving a PLA Notice and the actual mortgagee sale. This often happens when you have accumulated sufficient equity on the home and it’s in a ‘hot’ property market like in Auckland.

Quick sales are often measures to avert the stigma of a mortgagee sale. Such a tag often attracts bargain property hunters who can drive the value down.

So, reach out to a mortgage broker to help you negotiate a deal for a quick sale with the lender.

Liquidate other fixed assets to rescue your mortgage

Most people are unable to think straight when facing a mortgagee sale. That’s the biggest reason why you need external help, and of course, it comes with expertise.

When a lender is breathing hard down your neck, it’s hard to think of alternative ways to raise funds to clear the debt. You may even fail to see other assets that you could sell and use the proceeds to settle the outstanding amount. Do you have an extra family car or stocks you could sell and use the money to save your home?

If the situation is desperate the Kiwi Saver can transform into an emergency fund if you are experiencing significant hardships.

Refinancing with an Alternative Lender

There are times when the lender just does not understand, and perhaps you just need some breathing space before you get your financial footing back.

You can reach out to a bad credit mortgage broker to help you find an alternative lender to refinance the loan.

Non-bank mortgage lenders often have more flexible mortgage terms. However, the interest may be higher than what a conventional bank charges. Nevertheless, this shouldn’t be an issue since all you want is some breathing space until you get your groove back.

The above solutions may provide urgent relief when facing a mortgagee sale. However, that doesn’t mean that you shouldn’t act with urgency when in mortgage trouble. The sooner you reach out for help, the better your chances of finding a great solution.

When you miss making payments on your mortgage the lender has the right to engage a debt recovery process, especially when your loan goes into default. This may end up in a mortgagee sale situation. Anyone facing a mortgagee sale should seek legal guidance from a suitably qualified professional, like a lawyer, throughout this process. But, is legal advice necessary or is it just another way to lose much-needed cash?

Are there any benefits from seeking legal advice when facing a mortgagee sale?

Read on and find out.

When is it the right time to get legal help

No one wants to engage in a payment battle with a lender. However, financial ups and downs are not uncommon. When you miss making mortgage payments for about 90 days, the mortgagee (or lender) is likely to issue you with a letter of demand. In this letter, the lender will indicate the outstanding amount, including interests, any fees, and penalties that have accrued, and set a deadline date by which payment should be made.

It is a good idea to reach out to a suitably qualified legal professional when you receive such a letter. This is the first step in the formal debt recovery process.

But what kind of help can you get from a lawyer?

Reaching out to a lawyer is not in vain, neither is it a waste of money.  when you need it the most. Here are some of the benefits you will gain when you do so.

A Lawyer Will Help You Understand the Mortgage Contract Intricately

Mortgage contracts are often complex and involve various laws. When you seek legal advice from an expert, he or she will go through the contract, plus any other communication that you’ve had with the bank. They will help you to understand your rights and obligations, as well as the lender. They will also help you to understand the applicable laws that govern the administration of the loan as well as formal debt recovery.

Since most lenders have competent legal departments, they are often meticulous to ensure that they don’t breach as this could be probable grounds for action. Professional legal guidance is likely to help you to focus on the right direction – alternative solutions for mortgage rescue.

Help in Negotiating Alternative Solutions

When you fail to pay the mortgage according to the terms laid out in the contract, you are in breach of the contract. A lender has the right to a mortgagee sale. However, this is not the only solution available for them to recover the debt.

Chances are high that the mortgagee would be open to alternative solutions including:

• Reviewing the mortgage structure to lower the payments by extending the loan term. (A lender is not obliged to accept. However, a lawyer can help you negotiate for it and represent you at the table.)
• Refinancing with an alternative lender.

Inform You How to and Help Negotiate to Mitigate Losses 

If there’s no breakthrough in finding an alternative solution, and the lender is still pushing forward with the debt recovery procedures, a lawyer can give you information and help you mitigate losses. This is often by way of negotiating with the lender to allow you to sell the property without the stigma of a mortgagee sale.

This is often seen as a better option, and in some cases, it fetches a better price for the property.

Receiving a good price puts you in a better position to clear the debt and avoid being in debt post the mortgagee sale.

Ensure that the lender plays by the rules

During all these negotiations and discussions with the lender on debt recovery, the lawyer will help you ensure that the lender plays by the rules. This includes giving you rightful notice, ample time, they do not mistreat you, and they follow the right channels to ensure the property gets the “best price.”

If the lender is found to have breached some of the rules, the lawyer will advise you accordingly

With home loans hitting record lows since the reduction of the OCR to 1 per cent, the quest for homeownership surged in New Zealand. Of course, this has triggered demand-pull inflation on house prices. However, as the mortgage size gets bigger, more Kiwis are experiencing mortgage stress. But not all are succumbing to the stress. Many have learned how to manage and get rid of stress. Here’s how they did it.

What is mortgage stress

As the average size of home loans in New Zealand gets bigger, Kiwis are digging deeper into their pockets to service the mortgage payments. This not only puts a strain on other expenditure, but it also jeopardizes the mortgage.

More New Zealanders are straining their budgets to make mortgage payments and the bloating consumer debt isn’t helping.

When you strain to make mortgage payments you are likely to experience mortgage stress.

What causes mortgage stress

Many factors can trigger mortgage stress. However, the descent is often gradual and predictable. For starters, when you buy a home that you are struggling to afford, it sets you up for mortgage stress. You can also experience mortgage stress due to overly high repayment amounts. Also, when your home budget is burdened by high expenditure on revolving debt, you are on the brink of mortgage stress.

These factors create pressure on your budget leaving you susceptible to triggers such as”

• A rise in interest rates.
• An economic downturn (such as the looming downturn due to the Covid-19)
• Job loss
• Separation or divorce

How to avoid it

The best way to handle mortgage stress is to avoid it. But we all know that it’s highly unlikely for anyone not to feel stretched by mortgage payments. However, with careful planning you can keep the payments stress at bay by taking these steps:

• Keep yourself to realistic limits when buying a house. As the adage goes, cut your coat to your size.
• Keep revolving debt at a minimum.
• Test as many what-if scenarios concerning your income (prepare for the worst).

Work with an experienced mortgage broker and evaluate different lenders’ products, policies and customer experiences as well as trends in the market interest rates.

If you’re experiencing mortgage stress, here’s how you can manage the stress.

Managing and Getting Rid of Mortgage Stress

How well do you handle your finances? Are you spending too much on stuff you don’t need? Do you have a high debt burden, especially revolving debt? Reach out to a financial advisor to help you get your act together.

If bad budgeting or high revolving debt burden is not the issue, reach out to your lender and seek ways to reduce the regular payments. Check if you can:

• Get a mortgage holiday (Although this is not advisable and only restricted to situations of serious financial hardships). You can consider taking a short break during which you pay interest only.
• Review the payment schedule, say from weekly or fortnightly to monthly.
• Extend the mortgage term.
• Refinance to a lower interest rate option.

The first three options will help you manage mortgage stress. But you’ll be in debt for longer and you’ll pay more interest. On the other hand, refinancing to a lower rate mortgage is your best way out. But it’s hard to do this especially if you got late on some payments and your credit score plummeted. The lender may not understand your situation. Talk to a bad credit mortgage broker and find a way to get rid of the mortgage stress.

If for any reason you raise enough money to pay for your mortgage and you are worried that you may miss a payment or more call the lender right away. You should also reach out to MoneyTalks or www.familyservices.govt.nz/directory and get connected with financial advisers and mentors who are ready to help you avoid a mortgagee sale.

Here’s more on the options available to you.

Call the Lender First

Your first line of defence should be the lender. Conventional mortgage lenders in New Zealand are obliged to listen and work with you to find an amicable solution. However, this only holds if you make the distress call before your loan goes into arrears. In turn, most lenders in New Zealand have set up programs to handle hardships and avoid mortgagee sales.

When you reach out to the lender, the officer will ask you a few personal questions and request you to fill out a statement of financial position. The lender will be trying to establish:

• Why you cannot make the payments.
• Whether it’s a long-term or short-term issue.
• Your financial position. That is your income, expenses and assets like stocks and savings.

You should also reach out to the lender because it’s the mortgagee. Thus it bears the title and can opt to mortgagee sale your property.

After you’ve had a chat with the lender, it will evaluate your situation and recommend ways you can mitigate losses.

Seek insurance (ACC) or government assistance

If you can’t pay the mortgage any longer due to income loss occasioned by an unforeseen injury, you could have another way out.

Did you know that from the levies you pay, such as vehicle license and fuel taxes, you get accident insurance?

Well, the Accident Compensation Corporation (ACC) is a government entity that provides accident insurance scheme. ACC’s no-fault scheme covers everyone in New Zealand if they are injured in an accident. It doesn’t matter whether you are employed or run a business. But the best part is the cover does not only contribute towards treatment costs, but it also provides some help with your income.

If you are unable to work due to injury, visit an accredited doctor who will advise whether you are eligible for compensation. Plus, if the doctor recommends time off for more than one week, you can qualify for a compensation of up to 80 per cent of your average income.

The extra dollars will certainly go a long wat to help you avoid a mortgagee sale.

Refinance

Reach out to a mortgage broker and explore the option of refinancing to a more affordable loan.

Mortgage brokers will advise you on the current market trends, and interest rates. They will also advise you on the best-fit mortgage structure and whether it is viable to refinance to a more affordable option.

Nonetheless, many lenders put barriers and refinancing a mortgage is often not so easy or affordable. Costs such as breaking fees, valuation fees, legal fees and others may erode the savings you are looking to make.

Before you refinance, have an exhaustive discussion with an experienced mortgage broker.

Sell the Home

Lastly, if you have accrued sizeable equity on the property, and none of the options above seems to work, consider selling the home.

It’s a tough choice, but you know that it’s better to quit when you are ahead. It’s a better option than facing a mortgagee sale.

Sell the home and use the cash to buy a more affordable home. Who knows, you may have some leftover cash from the sales proceeds to handle other urgent financial needs.

Mortgage stress creeps on you when you spend more than the recommended proportion of your income on your instalments. It’s often an early sign of a homeowner who may end up in a mortgagee sale. Mortgage stress is often triggered by factors beyond our control like rising interest rates or economic depression. However, the real reasons why you may be experiencing mortgage stress are often hidden. You must be willing to search within yourself to find out.

Here are some of these reasons and what you can do.

You Bit More Than You Could Chew

One of the most common reasons why many Kiwis experience mortgage stress is taking unaffordable home loans. The average home loan for a first time home buyer in New Zealand has been rising. At the same time, low-deposit home loans have also been on an upward trend.

Expensive homes seem to be affordable due to ordinary kiwi. However, homeowners don’t envisage an economic downturn and how it could hurt their mortgage payments.

Could it be that you bought an expensive home?

One of the best ways to avoid making this error is by working with an experienced mortgage broker. They will help you to work out a comfortable budget and create a buffer which you can use as savings for a rainy day. Alternatively, you could sell the house and use the proceeds to downscale to a more affordable home.

Loan structure just wasn’t right for you – refinance and get the right structure

The most common mortgage structure in New Zealand is the table loan. In this model, lenders even out payments throughout the entire loan term. Changes only happen when interest rates shift or the lender chooses to adjust the rates.

Unfortunately, table loans are designed such that a bulk of the initial payments are allocated the interest, not principal. The proportion evens out much when the loan is more than seven years.

The challenge with this structure is more psychological. Despite making several payments worth thousands of dollars, the principal amount you owe moves by just a couple of hundreds of dollars. Worse still, if the interest rates rise while you are in the early stages of the mortgage, the monthly bill rises significantly and it could push you to mortgage stress.

You can avoid such a scenario by changing to a revolving credit mortgage or an offset mortgage.

Too Much revolving credit – refinance and consolidate

With the unprecedented rise in revolving credit among Kiwis, mortgage payments are feeling the heat.

Homeowners are spending more on credit cards, payday loans and other revolving loans.

When the debt burden exceeds 30 per cent of your pre-tax income, you are likely to experience mortgage stress. If that’s your situation, reach out to a mortgage broker or a qualified financial advisor for assistance on consolidating your debts.

Consolidation of your loans may take you slightly aback on the mortgage bill. But the relief of removing the pressure of high-interest loans is worth the move.

These hidden triggers of mortgage stress can affect anyone. Use the information above to prepare for your counterplan.

Many things can cause you to fall into a situation where your mortgage may be in jeopardy; job loss, marital issues, business failure or sickness can cause significant income losses. Any of these could translate to missed mortgage payments which will eventually a mortgagee sale.

But banks engage the mortgagee sale process only when they are convinced that you cannot pay arrears within a reasonable time. Mortgagee sales don’t just automatically happen. You should urgently get help to reduce the impact or save your home from going to a mortgagee sale.

Here’s why you should do it urgently.

Lenders Hate them

Believe it or not, lenders don’t like dealing with mortgagee sales. For starters, it sends a ‘negative vibe’ to existing clients. Plus, it costs substantial resources. This is one of the reasons why banks follow the responsible lending code. In this code lenders:

• Check that the facility is suitable for you.
• Assess whether you can afford it.
• Provide essential information and disclosures to help you make wise decisions (such as interest rates and amortization schedules)

Lenders also insist that clients should make an initial down payment of between 10% and 20% of the home’s sale value.

If you are facing a mortgagee sale, it is likely that by now, you are not dealing with the lenders directly. You are probably dealing with an appointed agent who wouldn’t have a history of the ‘good times’ or sympathize with you. Moreover, the agent is paid based on their efficiency. If you are in a hot property market like Auckland, chances are you’re dealing with an agent who already has bargain property buyers lined up.

Additional Costs

Dealing with strangers is one downside that you want to avoid. But it’s not as bad as dealing with strange costs.

When the lender contracts an agent to execute the debt recovery process, the costs are lumped up with the home loan. You’ll also be facing additional penalties, fees, and interests that accrue daily.

So, the longer you stay without reaching out for help, the more the debt grows.

Low Sale Prices

If you are banking on cashing in on the sale to clear your debt and restore some normalcy to your credit score, think again.

Mortgagee sales are infamous for attracting bargain property hunters who can manipulate the system and force low prices during the sale process. Although the bank should exercise reasonable care to get the best price for a property, it’s not a must that the bank gets the market price. The Banking Ombudsman Scheme stipulates that the bank only has to obtain a registered valuation of the property, appoint a marketing agent and properly consider offers made.

Incessant Pain

Since you are at the ‘mercy’ of the best price obtained at the mortgagee sale, and the sale price may be low, there’s a risk of your debt persisting beyond the mortgagee sale. For instance, Gary O. Burgess, had an NZ$23,000 outstanding debt even after he lost his property to a mortgagee sale.

When debt hangs on, even after a mortgagee sale, it’s not just another injury to your ego, it could result in insolvency and permanent damage to your creditworthiness.

Mortgagee sales don’t happen overnight. The process is elaborate and may take several months.

But the process of saving your home from going to a mortgagee sale may take weeks. You should urgently reach out to a trusted mortgage advisor and get options. You should also seek legal help from an experienced professional, like a lawyer.

For most New Zealanders buying a home is not just a financial move. It’s also an emotional step that comes with excitement and hope. However, there are instances where the buyer’s circumstances change, and they are no longer able to continue paying their mortgages.

It could be an unforeseen job loss or loss of business. Or maybe you are sick and can’t pay the mortgage anymore. Whatever it is, defaulting on a mortgage is not something anyone wants to do. No one wants to face a mortgagee sale.

But, there are occasions when mortgage defaulters can be indifferent and assume that nothing can happen when they default on a mortgage. This can be dangerous. Here are the reasons why.

Default Damages Your Credit Score

Banks and other non-bank mortgage lenders report the status of each borrower to credit referencing bureaus which in turn use this information to compile credit reports. The same information is applied in credit scoring models when calculating a credit score.

Your repayment history significantly influences your credit score and ultimately affects your ability to receive other forms of credit. It also affects your ability to take advantage of certain opportunities or access resources.

Defaulting on your mortgage could destroy your creditworthiness.

The Debt Sustains Even After a Mortgagee Sale

A common scenario that often leads homeowners to default on the mortgage and have a sense of impunity is when the mortgage is “underwater.” Or, when the market value for the home is far less than what the homeowner owes the lender. This may be due to dwindling property prices or a catastrophe such as a value drop in beachfront properties due to rising sea levels.

In such a scenario, the property owner may figure that a ‘strategic walk away’ is a good option out of the awkward situation. However, it is the wrong move.

The bank can mortgagee sale the property for the best value it fetches. It’s under no obligation to stick to a price. The proceeds would first be used to clear any costs associated with the process of mortgagee sales. After which the balance is applied to the outstanding loan. This means that there will be less money available to clear the outstanding mortgage bill.

Your debt balance could be larger even after a mortgagee sale.

The danger of Insolvency or Collection of Civil debts

Should you fail to settle the outstanding debt, the lender can apply to a court for the authority to collect the remaining amount as a civil debt. The court may grant the lender authority to attach other valuables you own – such as your car. Or the lender could get permission to collect directly from your employer.

If these options still don’t settle the outstanding mortgage, the lender could request the High Court to declare you bankrupt. Bankruptcy restricts your ability to get credit, to carry out business, access employment opportunities as well as your freedom to own property or even to travel.

Assume that nothing can be done to you when you default on your mortgage is dangerous. It will ruin your creditworthiness. The lender can also mortgagee sale the property, and collect the balance as a civil debt. Worse still you risk being declared bankrupt.

Instead of walking away from your mortgage payments, reach out to an experienced mortgage broker. You’ll get invaluable help in reviving your situation.

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 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.

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 HSBC, Westpac 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.