Dealing With Mortgage Arrears Before Your Home’s Sold
As specialist non bank brokers we have gained a reputation for helping people out of some awkward situations and in particular dealing with mortgage arrears.
Getting into mortgage arrears is more common than most people think.
The key thing is to deal with your mortgage as soon as you can, and that means getting expert advice.
Getting Help Dealing With Mortgage Arrears
Your existing bank or lender can come across quite harshly if you get into mortgage arrears.
A lot of people will “bury their heads in the sand” as they do not know what to do about the missed repayments.
The bank or lender often show no compassion and it’s difficult to deal with these people if you are not sure what to do.
This is why it is always best to get someone on your side that can help YOU.
So who can help you?
There are really two people;
- A specialist mortgage broker
- Your solicitor can also help but may not be able to provide the options that a broker has
A specialist mortgage broker has experience dealing with situations where people have mortgage arrears and once they know your situation they can recommend the best course of action.
This may be to get a second mortgage to get you back up to date with your bank, and then over time you can pay off this new loan. Sometimes the loan may be just for a short time to get things tidied up with the view that you can then refinance your mortgage. It can be an effective way to deal with mortgage arrears as you keep most of your lending at the bank rates and do not have to worry about break fees etc.
Sometimes it will be better to refinance the whole mortgage. If you have a mortgage that is in arrears it can be difficult to refinance to a bank so a non bank lender may be the best option. Your broker can advise you on this and it will be a matter of cost too.
Sometimes it is not realistic to try to keep the house – sometimes it is prudent to sell the house. If this is the case you could let the bank sell your house in a mortgagee sale however that generally means it gets sold below it’s true value, so you may be better off getting some bridging finance to allow you to manage a timely sale of your property.
These are some options to consider but a good broker will assess your individual situation to ensure that you are provided with the best options.
When Should You Contact A Broker?
In a perfect world you would contact a broker before you get into arrears; however that is unlikely to happen.
Most people will try and work through any problems themselves and only when things start to go wrong do they seek advice.
As mentioned, getting into mortgage arrears is more common than most people think but the key is to seek help as soon as you can when you have the best range of options.
The later that you leave things, the larger the mortgage arrears become and the harder it is to get things sorted out.
Once a property law act notice is issued it shows that the lenders are serious and this becomes a mortgage rescue … there are limited options at this point, but still some. We recently helped out Aaron and got a great result so never give up hope. Read Aaron’s story here.
It’s also important to understand that the banks and other lenders will be charging penalty interest rates too, and that can become expensive very quickly.
Tell us your story and let us help you sort out your mortgage arrears.