Take A Deep Breath: Missed Mortgage Repayments Aren't The End Of The World

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The great Australian economy bubble has finally burst, triggered by hardship that has hit the mining industry violently. It is no secret that the stability of jobs is unknown, as companies throughout the city are downsizing to cope with financial stress.

It is in these times of financial distress we are here, more than ever, to provide assistance and advice if you are experiencing difficulties in keeping on top of your finances.

We have noticed that missed mortgage repayments and financial separations are becoming increasingly common due to the tough period – but that does not mean you need to panic.

First things first; take a deep breath. The most important thing is you have options and help available. Accessing them as soon as possible is the best thing you can do in establishing a plan of action.

By acting fast when a situation turns sour, you have a better chance of getting your repayments back on track. By contacting your lender with the problem, they will be able to assist you in finding a way to resolve the issue. If you fail to do so, the bank may be forced to take legal action against you, which can include; extra fees, higher interest rates on missed repayments, enforcement charges, or a forced property sale. However, that will only happen as a last resort.

Lenders will want you to maintain your mortgage, and they have a legal obligation to assess and respond to your request for help. Having a plan of action before seeing them will benefit more – a lender knowing you are working to help yourself will favour you over those who remains stagnant in a gloomy situation.

Some of the options you have include:

Giving your lender a hardship notice

Depending on your situation the lender may review your notice within 21 days and return to you with a plan to ease repayments in the short term. While this may involve them increasing your loan costs, it will allow you to keep your mortgage, and home, in the long run.

Bringing your repayments up to date

This could include selling some of your assets to help raise money to pay for your repayments, or finding another part-time job on the side.

Claiming your situation on insurance

If you purchased insurance for unemployment, an accident, or sickness along with your loan, talk to your insurer about whether your policy covers you in the situation.

Refinancing and consolidating your debts

This will allow you to pay less in fees and interest on your mortgage, however, using it as a long-term fix can put you into more debt. Assessing how serious your problem is, and how long it will persist, will allow you to get an idea if this option is right for you.

Seeking out the advice of a reliable mortgage broker is invaluable in a financially stressful situation. They can explain your options in detail, suggest a plan, and work with you to lessen worries and achieve a solution.

It is important to remember that you have access to support and help. The pressure and stress associated with sudden unemployment, relationship breakdowns, and accident or illness can affect not only the repayments on your mortgage but impact on your health and wellbeing.

If you feel you have been hit hard by financial hardship and require advice or more information about your options, contact one of our friendly brokers who will be more than happy to organise a free appointment.