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Mortgage stress tips
Contact your lender before you miss a payment, to work out a
repayment schedule. Banks must follow a code that requires them to
be understanding of borrowers’ circumstances in a default situation.
Additionally, if the default is due to health or job termination, the
bank may agree to a "hardship" variation.
If the only option is to sell, it is better to control the sale yourself by
appointing your own real estate agent. Statistics suggest mortgagee-
in-possession sales yield prices 15% - 20% lower than voluntary
Superannuation can, with the approval of APRA (Australian Prudential
Regulation Authority), be released in financial emergencies. This
includes a pending mortgagee in possession sale of a principal place
of residence in circumstances of severe financial hardship.
Applications for early release of super can also be made if the
financial stress is from the cost of medical treatment not available in
the public system.
Income protection and mortgage protection insurance. Income
protection insurance will provide income replacement in the event of
illness. Mortgage protection insurance covers mortgage payments in
similar circumstances. Check your policy and contact the insurer if
you think you qualify.
Statistics show only a small percentage of people who fall behind in
their mortgage payments have their homes repossessed. Most
recover with the assistance of their lender.
For legal advice or help with an application for early release of superannuation,
contact Peter Carter at CCL LawSpace on 1300 552 908.
- by courtesy of Carter Capner Law – for cost effective
Telephone: 1300 55 29 08