Is your home loan or mortgage in arrears? Do you need money to urgently pay your mortgage or emergency financial assistance? Serious consequences for mortgage arrears exist, act now and see if you can get emergency financial assistance. Find how to clear your mortgage arrears. You may also be able to consolidate your debts.
Mortgage arrears can mean you might lose your house
When you fall behind on your mortgage, your home loan typically goes into ‘arrears’. The bank or lender records that you have missed payments and therefore needs to recoup this money. If you have gone through some hardship you may need to discuss with the lender or bank in the first place if they can offer a short term hardship option or mortgage holiday, e.g. for a few weeks.
There are reasons why people might fall into mortgage arrears:
- Loss of a job
- Sickness (e.g. a stroke, heart attack or cancer, or some medical condition requiring therapy or treatment)
- Disability (e.g. being involved in a major accident or car crash)
- Divorce or separation
- Credit Problems
- Too many debts
- Borrowed too much
- Death of a family member
- Problems with tenants
- Construction issues with the house
- Unpaid bills to contractors
- Not budgeting properly
- Going into overdraft too much and late payments
If you are in mortgage arrears its important that you take urgent action. If you do not take urgent action, the situation will most likely get worse. Here’s why:
Once you have mortgage arrears, these damage your credibility to pay a mortgage or home loan on time. It may also be negatively impacted on your credit rating or credit history. This means that potentially it gets harder if you want to borrow money in the future e.g. for a home loan, open a telephone or power account, buy something on hire purchase, or borrow money.
The more you go into arrears, the harder it usually is for a bank to help you.
You probably also want to learn how to improve your credit score.
How to resolve this
Consider speaking to a mortgage broker or financial adviser immediately. At Mortgage rescue, you can be put in touch with a financial adviser who specialises in these matters and can offer urgent help. They may be able to offer you a solution such as reduced mortgage payments, or some breathing space, or an outcome which provides financial assistance until your situation is better.
Resolve the situation before it gets worse. Being in arrears is often like needing to goto the E.R. (Emergency Room at the hospital). You may need urgent attention. The urgent attention will stop it from getting worse. Then with the right solutions in place and good quality advice, you can be hopefully brought out of the financial strife and have the opportunity to recover.