Struggling With Mortgage Repayments: 5 Steps To Help Ease The Pain
If you’re struggling with your mortgage repayments, take these steps:
- Don’t stick your head in the sand!
Many people burrow their head in the sand and wait until they’ve missed two or three payments to start working out a plan. Get Active in finding a solution before it’s too late.
- Contact Your Bank!
The Banks want to hear from you first – they don’t like chase you. Write a hardship letter to your lender, putting your situation in writing. Be specific about what caused the delinquency, with dates and a time frame. Make it detailed, be concise and be sure to commit to your proposal.
- Be polite and respectful!
You need to work with the lender to find a solution you both agree on. This may be extending the repayment period, suspending the need for payments for a few months, borrowing from family members or tacking the missed payments onto the back end of the loan. Keep your emotions in check and never be rude to the lender that is trying to assist you!
- Don’t lose Hope!
You are not the only person to find yourself in this situation. Don’t throw your hands in the air and assume it’s too hard. Your lender will have seen similar situations before and their preference is to work with you
- Selling the Home might not be the option!
If you sell the house for less than what you owe the bank may not release the title at settlement
And, we couldn’t help ourselves and just had to add one more….
- Foreclosure is a last resort!
If the bank repossesses your house a black mark remains on your credit record for many years. The house is generally sold in an untidy state that means you miss out on achieving the best sale price. They also apply exorbitant legal fees that could leave you with nothing. Missing mortgage payments can also affect your credit file.
Mortgage Brokers, Financial Planners and specialised advisors are great people to turn to when you need support and advice on how to manage the ever increasing struggle with mortgage repayments.
TAG Financial Group offer a complimentary 30-minute meeting to assess your situation and provide a series of steps that can be taken to ease the stress.These recommendations will address the 6-points above.