Home loan help if sick. Are you sick and need help paying your home loan? If you’ve been unwell for a while, chances are you need help paying your home loan. Unfortunately a lot of people who are sick over a long term period find it difficult to meet repayments. Being sick often means taking time off work and this can be months or years.

Contact now about financial assistance if you need help paying the home loan. If you fall behind on your mortgage or bill payments you need to take action otherwise your credit issues may get worse, you get arrears, and you may even lose your house!

It’s important to meet your home loan obligations

Whilst it is an unfortunate circumstance to be sick, and we empathise on the situation, it is still important to meet your obligations. If you do not meet your obligations, for example, you aren’t paying your bills or loans on time, you risk losing the home and may be taken to mortgagee sale. This is where the bank instructs the forced sale of your home, which can also often create further financial difficulties.

If you are in this position it is important you look at if you could stop a mortgagee sale.

Getting help or hardship for your home loan help if sick

If you’ve become very sick and can’t work, you may need to have your home loans restructured. In the first instance it is usually ideal to contact your bank or lender for help. They should have a hardship process that can be worked through.  Examples of ways you could help:

  • Interest only payments – Your bank might allow you to restructure to interest only repayments temporarily. This means that you pay lower amount every week, fortnight or month on your mortgage
  • Extending your loan term – Your bank may allow you to extend your loan term, this means your mortgage repayments are extended longer

There are different reasons why someone may need to take time off work. These can include, a heart attack, stroke, cancer, therapy, or even COVID-19 – mortgage holidays were announced.

If your bank can’t help you, what can you do next?

If your bank can’t help you anymore, you need to start planning ahead. This means that you are at a real risk of losing your house and being taken to mortgagee sale. Chances are that your position is no longer sustainable. Take action and get urgent help for your home loan before the problem gets worse.

Changing to another lender could help you? Ask about urgent refinancing

If you change to another lender, this could help you get urgent financial help before it gets worse. You may be at risk of being sent a PLA (Property Law Act) notice. Another lender might be able to help you even if you have been turned down by your bank. They can even help if you now have bad credit issues and are falling behind on paying the bills.

Important: It’s important to seek help of a good financial expert in this process who is qualified in this area. Not many mortgage brokers understand the complexities, urgencies and key issues around a urgent refinance.

To discuss getting in touch with a financial expert who can assist you, contact Mortgage Rescue NZ.

They can also talk to you about a non bank lender or second tier lender.

Get help before it is too late

Get urgent home loan help. Another lender may be able to help you, even if you’ve had bad credit in the past.

how to stop a mortgagee sale if sick can't pay bills
Get urgent financial help if you’ve been sick and had late mortgage payments. If you fix your situation now, it usually gives you a better chance at getting back to a normal situation sooner.

Sell the house?

It may also be that you need to consider selling the house. This is not a bad thing, and it means you probably can yourself from more credit issues down the track. Because you’ve fixed the situation before it has gotten worse, it could give you a better chance at getting good credit again in the future before it is too late.

If the bank has threatened the possibility of a starting to send you default letters, or has hinted at the mortgagee sale, you may be running out of time to sell the house. It is possibly even too late but it is typically better to try get help now rather than later . A financial expert or mortgage broker who specialises in urgent non bank lender work and guidance may be able to help you, so get in contact urgently. They may be able to get you a 6-12 month new loan,  just to give you a bit more time to regroup your finances and sell the home.