Financial Assistance for Mortgage or Home Loan
Getting financial assistance for your mortgage can be easy. Struggling to pay your home loan? Need money to pay your mortgage? A “Mortgage Rescue” or a range of options can get you emergency money to pay the mortgage. This can be possible even if you’re having challenges getting credit elsewhere.
Paying your home loan is serious
One critical point to understand, is that it is generally very serious to pay your home loan. If you do not pay your home loan, there is a real risk the matter will get worse, and your bank will charge you more or penalise you. If this continues to get worse, they may threaten the prospect of a mortgagee sale. This means you lose possession of your home and it is sold to someone else, to help recover the debt you have to the bank or lender.
This is extremely serious. It presents a real risk that you could have your credit rating greatly harmed, and lose money, and be in significant amounts of debt. It can also lead to your bankruptcy, meaning you lose a lot of your possessions. There are a good number of New Zealanders that unfortunately lose their home through the mortgagee sale process, and often this is caused by them not taking action sooner.
Work and Income
Work and Income (WINZ) can sometimes help you in the direction of help with your financial affairs. They may be able to help you locate how you could get some governmental support towards your accommodation or home, to help you financially.
You may be able to make an appointment with your local WINZ office and ask for them to help you understand different benefits or options and see if these are able to help you.
Charitable Organisations Might Provide Financial Assistance for a Mortgage
There are some charitable organisations that may be able to assist. Depending on the circumstance, some charitable organisations may be willing or able to assist with living costs.
Speaking To Your Bank
You can consider speaking to your bank and ask them to consider your situation. The bank may be able to offer you a payment plan or convert your payments to interest only. If you pay interest only, this means that in the shorter term, your repayments or installments you pay every week, could decrease. If you are able to resolve the situation with your bank, this could help before it gets worse. Consequently, taking steps early as possible, can avoid things getting worse.
Refinancing or Changing Banks / Lenders
Sometimes your bank may be unable to assist you to the extent you need, and therefore it may present itself that you need to choose another lender or bank in the interim, at least until the issue gets better. This could provide that safe ‘middle ground’ that might give you some time to recover around your situation.
For example, if your bank is unable to restructure your mortgage payments to greatly reduce them, then you might want to talk to a professional mortgage broker about if another lender could help you more. Another lender might be able to further lower your repayments in the meantime, perhaps until your situation gets a bit better.
A financial adviser or mortgage broker could be a starting point for this. As a result, you might want to make urgent contact to discuss if this could be an option.
Mortgage Rescue For Financial Assistance for Home Loans
If the situation starts to turn for the worse, it’s important to consider taking urgent action. This might mean you need a ‘mortgage rescue package’ to stop the prospect of your mortgage from falling further behind.
Here are some situations you may need to avoid:
- Going into arrears with your mortgage
- Late home loan payments
- Failing to make council rate payments, or arrears with council
- Being threatened or asked to pay penalties to your bank
- Getting a Property Law Act notice
- Being in default of your mortgage or the bank forecloses on the mortgage
It is possible that the bank may commence legal action if you do not resolve issues promptly, which is why it is typically important to seek urgent legal and financial help.