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Bank Foreclosure

If you have received a mortgage default notice then it is time to start thinking seriously about how you are going to extricate yourself as foreclosure is just around the corner and if you donít act quick. The first thing you have to decide is can your really afford to keep paying this level of mortgage and are you ever likely to catch up so you account is in good standing.

You need to ask these questions of yourself honestly, as only you know your personal circumstances.. .....Yes/No or maybe a 50% probability of catching up eventually. If you are sure that the present situation is just a cash shortage or expenses blip and that your future income is assured with sufficient margin to catch up the arrearsí then you would be well advised to do all in your power to make an arrangement with your mortgagor. You will want to have a payment plan drawn up showing how you are going to get into good standing for you to have any credibility. If you have trouble getting to the hardship department of the bank then it may be useful to employ the services of a debt consultant {as offered by the Salvo's and others} as they can be more persuasive being more ofay with the credit code and doing this every day. They have quite a good success rate at deleting ancillary debt such as credit cards and getting interest and payment moratoriums.

But donít fall for the trap of a refinance to try & extract more cash out of your property as this is only likely to dig you further in if you canít service existing levels of debt. A consolidation loan on the other hand may help to reduce your monthly outgoings if you have credit cards etc. You can find more on how to handle bad credit problems here.

If you know that you are going to be struggling for a long time to catch up then it may be beneficial to cut your losses and your stress levels now. Presuming that you have decided to cut your losses and not to hang on for the inevitable then your best case scenario is a quick sale of your house at a discount making the mortgagor happy, keeping your credit file clean, maybe a bit of cash for a new start into a property back trade where you can comfortably afford the new mortgage and you can get on with making a go of life without the debilitating worry of mortgage stress.

Your worst case scenario is the bank actually taking your house, maybe declaring you bankrupt, marking your credit file{which will impede you severely in ever owning another property of your own for a long time} evicting you to the street { you canít even get emergency housing through center-link till you are actually on the street...then you might have to wait a week} and have no cash in your pocket. Not very nice! But you would be surprised at how many people in Australia follow this path as a result of burying their heads in the sand and not believing it is happening to them.

More people are gradually catching on to the idea of the extreme importance of maintaining their credit history in good standing in preference to their bank balance as they realize that the quality of their credit file is going to determine their bank balance tomorrow. {Notice the large number of people because of poor credit with Liberty type loans paying 11% plus with 4% early termination feeís and their ensuing high default rates}which equates to low net wealth. If a person acts straight away after a default notice they can usually walk away from their home with a little cash, pride still in place, and credit in tack.If you need to move your house on quick [ even with negative equity] consult webuyhouses. For more info on reducing debt see info on bad credit loan . or if you think a consolidation loan is the go then check it out.

For NSW Residents:

Free Legal Advise on Mortgage Stress Call Law Access 1300888529

Credit & Debt Hot Line 1800808408

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