Foreclosure and house repossession can be stressful and have long lasting effects on your health. It’s important to do some research, find out alternative debt solutions and understand all the potential options before you head down this path.
When you are stressed and overloaded you can feel like burying your head in the dirt but failing to take action early can mean foreclosure becomes unavoidable. With a few phone calls or the click of a mouse you can quickly have access to a plethora of information. Narrowing down what’s the right option for you can be the tricky part and that’s when it’s good to talk to a financial counselor.
Anyone who’s been through a foreclosure can attest to the stress, embarrassment, anger and even shame that you feel when, what you’ve worked so hard for, and already sunk so much hard earned dollars into, has become mortgagee in possession. It can feel so unfair. On top there is the stress of finding somewhere else to live! With no savings for a bond on a rental property and having to find something in the right price range, could mean completely uprooting the family to another location. But there are options to explore before this becomes a reality one example, being a debt agreement solution.
Where to start?
The NSW Legal Aid organisation have a publication with everything you need to consider when heading towards loss of home. It’s stated in the publication that all home loan lenders must now be members of an approved free dispute resolution scheme and that in fact all lenders who give consumer credit loan—such as credit cards and personal loans or loans for investment in residential property must be members. The first thing to do is to seek hardship relief from your bank, at least this might give you some breathing space, to think. If you are having difficulties negotiating this with your creditor’s then the following schemes may help.
There are two schemes:
1. Financial Ombudsman Service ph: 1300 78 08 08
2. Credit Ombudsman Service ph: 1800 138 422
They are based in Melbourne & Sydney but they provide national service. It’s a good place to start and it’s free.
Debt Cutter has helped many people stop foreclosure and keep their home.
When you have got past the point of hardship relief and your circumstances have not improved then it is time to seek a longer term solution. Debt Cutter has assisted many people in just this situation to keep a hold of their house. We understand that life often throws us curve balls and where you are can be more a case of bad luck than bad management. We are here to help you through this crisis, it is possible to turn things around. Read about how Leonard was able to save his home after his wife fell ill with the help of Debt Cutter.
Here at Debt Cutter, we can help you by negotiating a debt agreement with your unsecured creditors, ie. credit cards, personal loans etc. This option freezes your interest and reduces the debt repayments significantly on these debts. What this does is frees up your cash flow so that you are then able to continue paying your mortgage and/ or car loans. You don’t have to refinance your loan to do this. This arrangement is a formal arrangement backed by legislation and therefore legally binding to you and your creditors. The best thing to do is call us, we can talk you through the details and if this solution suits your situation then get it sorted for you. Fill in the form for a free, no obligation, phone consultation or call us on 1300 887 211.
We are also keen to hear from you if you have been in this situation yourself, and what resources or services you found useful. Please share with us and others on our Lets Talk About Debt community forum so we can all help to make others experiences better and help each other to find the best possible outcome. Or comment on this blog.