It is possible to lose your home if you cannot make your debt repayments. Its best seek help as early as possible to avoid eviction. However, you cannot be evicted right away. There’s a process that must be followed, and notices that must be issued first. Read on below to find out more.
When you decided to buy a home, you probably borrowed money from a lender. The lender would have taken a debt over the debt you bought to secure the home loan. The lender does this so they can take your home as security so that it can be taken from you and sold if you do not keep to your home loan contract with the lender. This is called repossession, and can happen when you are behind on your debt repayments.
Before they can start legal action against you, lenders must:
A default notice should also explain that the repossession and sale of the debtd property may not repay the entire debt, and also include information about your right to give a hardship notice. Your default notice should outline your rights to complain to the Australian Financial Complaints Authority, before explaining what may happen if the default is not fixed within the period stated. It may still be possible to apply for a hardship variation at this stage.
Once these steps have been taken, eviction is possible. If your lender gets a court order to repossess your home they will send you a Notice to Vacate. After what is usually a period of 30 days, a sheriff will come to your home, evict you from the premises and change the locks. It’s important to note that this process does not release you from the obligation to repay your loan. Your lender may sell your home and recover any outstanding balance by taking further legal action against you.
*Disclaimer: This article contains general comments and recommendations only. It is not intended to be and should not be construed as legal advice. This article has been prepared without taking account of your objectives, financial situation or needs. Before taking any action, you should consider the appropriateness of the comments made in the article, having regard to your objectives, financial situation and needs.
Can I get a loan to help pay my debt? Table of Contents Using a personal loan to pay off your debt generally isn’t recommended.
What are my options when I can’t pay my debt? Table of Contents If you’ve fallen behind on paying your debt, there are options available
Can I sell my home if I’m behind on my debt? Table of Contents If you’ve fallen behind on your debt payments and can’t figure out a
What Are The Potential Repercussions For Missing A debt Payment? Table of Contents When it comes to debt payments, missing one can seem like a
Our advocates can assess your financial situation and start to plan out a path to take back control of your finances.
Toll Free Number
Monday – Friday: 8:30am – 8:00pm
Saturday: 9:15am – 2:15pm
Copyright©nationwidedebt.net.au
