3 urgent things to do when you miss a mortgage payment.
Failing to repay mortgage is the last thing you want to do. To avoid the possibility of failing to repay mortgage, you need to always have enough savings for at least three months of your mortgage bills. But if, god forbid, terrible things happen and you are unable to pay your mortgage, it is time to take the further, urgent steps to make sure you don’t lose your property. Here we have listed three things you can do when you are behind on mortgage repayments.
1. Talk to your lender
Missing a mortgage repayment is fatal, but it’s not the end of the world. The first thing you have to do once you find out you haven’t paid this month’s bill is call your lender. They will ask what happened and you have to tell them your situation. Tell them why you missed a payment and whether you can find a way to pay a few days later without being charged with late interest. Or if you think you may have difficulties paying next month’s bill too, ask them if there’s anything to do to adjust the payment due date or lower the amount of monthly bill. The key here is to tell your situation honesty. Be honest and your lender will be happy to help you. They don’t want to lose a good borrower like you, after all.
2. Get some help
Once you have talked to your lender, they will leave you with a few options to get you back on track, depending on your current financial situation. But if you think the options are still way out of reach, then you need to get help from other parties – which also depends on your current situation and what caused you to miss a payment.
If you missed a payment because you had an accident, got sick or had other kinds of loss, go talk to your insurance company. You can claim your insurance if you the policy covers your situation. This way, you can get out of your situation in a relative short time and get back to paying your mortgage regularly.
You can also talk to a financial advisor or seek free legal advice if you think the situation has gone a little out of hand.
3. Avoid the traps
When facing a problem with mortgage repayments, one can be tempted to ask for help from family or friends. But this is a trap you should avoid, because borrowing money from your loved ones is never a good idea. It may also cross your mind to get money from your super, which is also not a good idea. Your super is only accessible under very limited circumstances, and it is best not to interfere with it until you retire.
To help you with the repaying your mortgage, you can apply for a short-term loan. SpotMe offers you instant loan with no hassle, flexible repayment and low interest. This may not help you pay your mortgage directly, but it helps you get out of your financial situation so you can get back on track as soon as possible.
If you find you struggle with your mortgage repayments, know that you can always contact Australian Financial Complaints Authority (AFCA) for help.