A home loan default is understandably one of the most stressful and difficult situations for a homeowner to go through. Home loan defaults are often the result of a disastrous life event, such as divorce, loss of income, illness, or death. Mortgage companies focus on providing loans, not taking properties. They often work with those who have mortgage arrears, to help them get back on track. Knowing what to consider for home loan default issues can help you begin a process of getting out of default, and into good standing with your mortgage.
Work out the length of time that you’ve been dealing with a Home Loan Default. A lender may only allow a default to last for a few months before proceeding to foreclose on your property. The longer you are in default; the more you will have to pay off your arrears and legal expenses.
This usually requires paying off the entirety of payments that have been missed. Some companies are willing to work with you to help you make the payments. This may require a larger initial payment on missed payments, with increased monthly payments to make up the difference. Although this adds to your financial burden, it provides a great way to get out of home loan default. Ask your lender to know the exact value of your home loan default. With legal and other expenses involved, knowing the exact cost will help you form a payment plan.
The clock is ticking once your home loan is in default. Most people generally have three to six months before legal action is taken to seize their property. Speak with your lender to find out how much time you have. For any debt older than three months, your lender may require the full debt to be recalled. This means you need to pay your whole loan, and not just your arrears. Determine what your options are, by discussing them with your lender.
Recruit the services of a professional who works with Home Loans in default. They could help you negotiate a satisfactory settlement for your home loan, whether it involves negotiating for your lender to keep your debt, or to refinance to another company. Contact theLoansaver Network today on 1300 796 850, to see how we can help with your home loan default.