Mortgage Stress

Repaying a home loan for the next 25-30 years can have its ups and downs, even with the best of intentions things happen in life - sickness, job loss, large unexpected bills - managing your mortgage is an important part of home ownership. If you get behind on your mortgage payments a lender could sell your home at mortgagee sale - if you don't take action.

So here's some helpful tips that may help;

Take action - don't leave things and hope it will all come right
If you know you may not be able to make your next mortgage payment talk to your bank as soon as possible, they may be able to help if you contact them sooner rather than later. Maybe a mortgage repayment holiday will help. You may be able to apply for financial hardship but this generally has to be done before you get into mortgage arrears.

Already in arrears?
Again its important to keep the lines of communication open with your bank/lender. Let them know that you're aware of the situation and want to get it resolved - lenders may be able to assist in allowing you to repay the arrears over time. In some cases you may be able to apply for financial hardship but this generally has to be done before you get into mortgage arrears.

If you're 3 months or more in arrears you may have received a DEMAND. Please DO NOT ignore this notice, contact your bank/lender straight away. There will be an expiry date on the DEMAND which if passed will mean the bank/lender will issue a Property Law Act notice.

Property Law Act notice - PLA
If you have been issued a PLA then the bank/lender is really serious about getting the arrears up to date. This is a legal enforceable document which means if you do not pay the arrears the bank/lender can sell your home at mortgagee sale.

They can also take possession of your home and lock you out. If a PLA expires then the bank/lender's solicitors will instruct a local real estate and possibly a Valuer to assess your home for sale. If the PLA is not remedied then your property could be sold at a public auction for less then its value and therefore you will lose all your hard earned equity. We strongly recommend you contact your solicitor so they can advise the legal implications.

So how can we help?
We can help at each stage of the mortgage arrears process even if the PLA has expired. We will need to assess your financial position and advise you on your options. We understand the stress and anguish that you must be going through and will do our utmost to assist if we can.

With our 'Mortgagor Rescue Package' maybe a second mortgage can be applied for to repay the arrears, may be a family member can help or guarantor. May be a full refinance is required to help you get back on your feet, then refinance back to 'bank rates' at a later date, or sell the property without the stigma of a mortgagee sale.

For many clients we have negotiated with the bank/lender to have expiry dates extended and liaised with the banks lawyers to find out other important information to help you. (We do charge an hourly rate for this service, if we negotiate on your behalf)

Over the years as a mortgage broker I have helped save 53 homes for mortgagee sale and saved hundreds of thousands of dollars in equity - I may be able to help you.

The above is for information purposes only and not to be taken as advice. For detailed advice on your situation -

Call us on 0800 ADVOCO (0800 238 626) or email us.