How Can I Prevent Home Foreclosure?
How Can I Prevent Home Foreclosure? Table of Contents If you’re concerned that your home will be foreclosed on, you might be wondering if there
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If you’re facing a mortgage default or are having difficulties making your repayments on time, you might be wondering if a mortgage default will send you into debt. In most cases, the more you fall behind in your repayments, the harder it could be to catch up. If your lender adds on late fees to your overdue amount, you could end up in more debt than you originally thought.
For more information about mortgage defaults and debt, read on.
A mortgage default generally occurs when a borrower falls behind in making their home loan repayments. This usually happens when a borrower is behind for 90 days or more. A default can then be listed on your credit file, which may make it difficult to get approved for future loans, and can also negatively affect your credit score.
While a mortgage default is technically already a form of debt, having a default can make your debts worse. On top of your regular amount owing on your home loan, you might have to deal with overdue fees charged by your lender. These fees could mean that you end up owing more than just your overdue amount in the end. The amount of these fees may differ from lender to lender.
As well as having to deal with late penalties, you might find that the overall interest charged on your loan could increase, depending on your lender and your mortgage type. If you fall further behind on your mortgage repayments, your lender may end up having to sell your house to recover the unpaid funds that you owe.
When you apply for a loan, a lender can see your credit file. This will have any defaults listed, as well as if they have been paid back or not. A lender can also see the total amount of your debt and who they were lent by. Since a default generally stays on your credit file for five years from the date that it was lodged, there’s a good chance that a lender will see your default when you apply for a new loan.
SR & Associates has more than 40 years of experience and has successfully helped 1,000’s of people Australia wide with both mortgage and debt issues.
We provide support to those who do not know where to look, or who don’t know where to turn during the mortgage default process. Our helpful advocates can give you confidential assistance, and find a personalised solution that works for you. We also believe in complete transparency, so you won’t get any nasty hidden fees. It can be helpful to have someone on your side, advocating for your needs. That’s where we come in. If you need help and support, call our supportive advocates for your free consultation today.
*Disclaimer: This article contains general comments and recommendations only. It is not intended to be and should not be construed as legal advice. This article has been prepared without taking account of your objectives, financial situation or needs. Before taking any action, you should consider the appropriateness of the comments made in the article, having regard to your objectives, financial situation and needs.
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