Experiencing a foreclosure can be devastating and add another layer of stress to your already stressful situation. Foreclosure usually occurs when you have remaining mortgage payments to be made for several months. This is when the lender seizes your property and recovers his borrowed amount. In Queensland this process is commonly known as “mortgage in procession” or the next option for lenders is “warranty and seize”. However, stopping a foreclosure and saving your property as a homeowner is not impossible.
Here are a few simple ways you can somehow recover from your emotionally and financially difficult situation:
Consult with your lender
When you realise you will be behind in your mortgage payments, it is better to contact your lender. Even though it may be overwhelming for a homeowner, ignoring the problem won’t make it go away. The sooner you address the issues, the sooner both can work on it strategically to save your property.
Refinance your mortgage
Refinancing with a lower interest rate or longer repayment term might reduce your monthly payments if you own equity in-house. The best option could be to obtain a loan from another lender with better interest rates. Therefore, this allows you to stay in the current property and prevent foreclosure.
Consider loan modification
Generally referred to as hardships variations or loan restructuring, a loan modification can help individuals adjust their mortgage terms for affordable payments. This may include lowering interest rates, extending payment periods or temporarily switching to interest-only payments.
Government assistance programs
In Queensland, homeowners facing financial hardships might be eligible for government assistance programs such as mortgage relief loans or can contact the National Debt Helpline (NDH) for counselling. These programs offer financial relief and negotiation support to prevent foreclosure.
Seek a legal advice
Consulting a foreclosure attorney or financial counsellor can help you understand your rights. They can assist in negotiating with lenders and, if necessary, examine legal options such as bankruptcy.
Life can sometimes be of highs and lows, but foreclosure doesn’t necessarily mean you need to lose hope. By taking proactive measures, staying up to date and seeking professional advice you can regain financial stability. Whether it’s choosing another loan option, negotiating with a lender or applying for government programs there are ways to relief.
Remember you’re not alone, contact our team of experts to go through any real estate circumstances.
