The number of Australians who fall behind on mortgage payments depends on the economy’s health. In 2019, industry insiders believe that one million Australians experienced financial hardship in terms of mortgage repayments. That statistic remains level even though several experienced turmoils during the 2020 lockdowns.
Brokers won’t come across clients who have trouble paying off their mortgages all the time. However, if some are struggling, it’s good to know that there are options available to them. Plus, action taken by lenders isn’t swift. There are steps they follow to allow the client to get back on track.
Lenders notify the client by mail as soon as the mortgage becomes delinquent. If there’s no communication between the client and lender, the lender calls the client. When the default notice doesn’t deliver results, the lender starts the clock on the 30-day default period. If there’s no resolution, the lender has the right to begin eviction proceedings.
As soon as a client cannot send their mortgage repayments on time, it’s up to the client to notify the lender. The client has the right to apply for a hardship solution. The hardship solution includes loan modification or deferment. Mortgage Street offers additional alternative solutions based on the client’s financial situation.
When things become out of hand for the client, selling the home is a viable solution. The proceeds pay off the outstanding mortgage amount. Ideally, there’s enough leftover to put a down payment on a more affordable house and mortgage.
Behind on Mortgage Payment Conclusion
Clients who fall behind on mortgage payments have several options available to them. Lenders take several steps to help the client solve their financial issues before an eviction proceeding unfolds. Mortgage Street is among the non-bank lenders that work with clients and offers alternative solutions. For more information, contact our loan specialists.