Mortgage Arrears are not to be Ignored
Unlike many other things in life, if you ignore your mortgage arrears they will not go away. Mortgage arrears if the worst does happen could result in foreclosure by your lender and the loss of your home. However if the worst does not happen, your mortgage arrears could still do a lot of damage to your credit history and your ability to borrow in the future.
If you are experiencing a problem with your mortgage repayments for any one of a number of reasons such as : – a loss of job; – illness; – a baby; – divorce, etc. you should contact your lender, alert them of your difficulties and try to negotiate a temporary reduction in your monthly repayments. Sometimes a reduction in monthly obligations for several months will enable you to catch up and get back on track. It is extremely important that you contact your lender and alert them of any difficulties you may be having before you go into arrears on your mortgage. Most mortgages that go into arrears get back on track with the lenders assistance.
A Mortgage in Arrears Requires Immediate Attention
Where the problem is more serious and a short reprieve in payments will not help, try to refinance your mortgage with a Non-Conforming lender. A number of specialist non-conforming lenders in Australia will assist home owners in trouble by refinancing their debts and arrears into a new mortgage. If in fact you have the required equity in your mortgage and can demonstrate sufficient income to qualify for a refinance this may just be the best solution. Your current lender will not wait for their mortgage repayments forever, hence if you are in arrears and are looking to refinance you need to move quickly before your current lender takes action to sell your home.
Where your circumstances are very serious and a refinance will not be possible it is worth trying to sell your home yourself. If you do nothing and wait for a Mortgagee sale you will probably receive far less money from the sale. Also your credit history will look a lot worse as a result.
If you are an Aussie whose mortgage is currently in arrears and you are investigating your options with Bad Credit Refinance please do your homework before making any decision, as the wrong decision could prove to be very costly