Best Solutions of Paying Your Home Mortgage Problems
Selling your home must be an absolute last resort and only be considered when you have legitimately exhausted ANY other reasonable options.
Options should include contacting your lender and speaking with the hardship officer according to moneysmart.gov.au. Early communication is key and its important that you don’t over promise your ability to catch payments up unreasonably. Making contact with a financial councilor on 1800 007 007 ASAP is a great starting point, this is a free service and the best place for you to get the right advice. These trained individuals can help you negotiate and they have an excellent understanding of the process lenders go through to help resolve debts.
Financial counsellors do not offer legal advice. If you’re facing legal action, get free legal advice straight away.
When you speak to any of your creditors it is good practice to follow up any verbal conversations with written confirmation and further advice along with letter templates can be found at The Financial Rights Legal Centre.
Take Care of you, your family and your mental health during this stressful time. If you need to talk to someone you can reach out to Lifeline on 13 11 14. You are not alone and having the courage to ask for help can really help you and your loved ones through hardship.
In certain circumstances, selling your property might be the only sensible option, but before making any drastic decision, I would highly recommend you seek advice from some of the resources above.
FAQ’s
Should I just let the bank take possession and have them deal with the sale?
Seek advice from your financial counsellor as to what they think the best option is for you. Usually in cases where you owe much less than the house is possibly worth it is advisable that you try to facilitate the sale yourself before repossession. The bank just wants their money back and while they are bound to try and get you the best price, they are also obligated to mention the sale is “Mortgagee in Possession” which tends to attract savvy “value driven” buyers. With the right agent and the right marketing campaign you can hold an auction as soon as 3 weeks and sometimes sooner if the market is in a Sellers favour, You might be under a lot of stress but if it means you walk away with 200k instead of 50k then its best to endure the inconvenience.
What if the property needs work before coming on to the market?
Funds are likely to be tight, talk to your agent about options without giving away your position. You might say, I really need the best price I can get because it helps me move into something else rather than declaring that you are months behind on your mortgage payments and about to be evicted. When it comes to presentation just clear rooms of clutter , tidy up the garden to present nicely and use some smaller touches like smart fabric throws for the beds and couch. Clean and uncluttered can be done quickly and efficiently…your moving anyway so get brutal on what your keeping and what you are letting go, dealing with it now “once” really helps.
How much commission should you pay?
This is a great question and the answer depends on the type of property your selling, If you believe demand is going to be very strong for your property then go with an agent that can get the job done cost effectively without comprising the quality of the service provided. Meet 3 or more and ask them how they will market the property to the public and get a feel for who will get you the best price. If your property is a luxury property then you are probably likely to benefit from going to an agency that specialises in luxury listings.
Speak to your agent about what method of sale you should go to market with ie an Auction or Private Treaty sale and set firm dates up front so that you can know your timeline and can work around home opens etc.
Here is great time driven moving calendar that has some great ideas to keep you on track.
if you would like to talk to me about selling your home then please reach out to me directly on 0422 333 333.
I will do my very best to deliver the most effective marketing campaign specifically designed for your property and negotiate in your best interests to achieve the best possible price during negotiations.
Kindest Regards,
BJ Gregory
