I realize that many people might be viewing this blog because they are interested/looking into, Rent to Buying their own home. Today’s blog contains helpful information that you need to know (trust me), for when the day comes when you will transfer your Rent to Buy home purchase over into bank finance. From that day on, this information could just be your life saver!
In one of my email responses last week, I was sharing with someone about mortgage shortfall funding. They (like most people), had never heard of this before in their life. This is one of the hardship variations that are made avaliable to mortgage holders. When a property becomes worth less then what was paid for it, it makes the property very hard to sell, especially if the mortgage is maxed right up there at the purchase price.
We regularly speak with mortgage holders who are experiencing difficulty with their mortgage. Most times, the bank or lender of these mortgage holders have not even informed the mortgage holder of their rights to access these hardship variations.
Most times, banks and lenders will just bulldoze in to foreclose, as its far more beneficial and profiteering for them to take back the asset (the home), force a fire sale and then make an insurance claim on the shortfall.
Most Australians are also unaware that the mortgage insurance (that you are forced to pay to take out a loan if you have less then 20% deposit), insures THE BANK – not the home borrower. Fancy that – you are paying to insure/cover your bank or lender’s back!
From what we see on a regular basis, the majority of Australians are totally unaware that there is help avaliable to them (through the hardship variations), under their mortgage contract should they find themselves in difficulty with their payments.
To find out more about the hardship variations that are avaliable to mortgage holders, click here:
http://www.webuyhomes.com.au/sell-a-home/behind-on-payments-facing-foreclosure.html
Even Genworth (one of Australia’s mortgage insurers), in their biannual magazine, put in print that there is a lot of work to do in educating Australian banks and lenders to come forward with this information to mortgage holders. I’ve included the link here in case your interested for the read:
http://www.genworth.com.au/streetsahead/Streets_Ahead.pdf
Don’t forget, if you or someone you know are having trouble with your/their mortgage, or are being foreclosed upon, you can obtain help here:
http://www.webuyhomes.com.au/legal-help.html
We’ve seen some great results for people who have contacted us through the above link. These people would have definitely lost their homes had they not contacted us.
The new book that we are writing is continuing to come along very well. The book is being written as a novel and shares of one family’s journey to hell and back as they walked through the very dark valley of mortgage foreclosure. It is jam packed with strong, helpful direction for people to take action on in their own situation – including the hardship variations that are contained in the link above. Keep your eye out for its release later on this year – its called “Real Estate Assassination.”
As yet, on my journeys around different bookstores and talks with various solicitors, there really is nothing out there for people to get hold of who are in distress with their mortgage or losing their home to the bank.
The heart behind this post is to equip you with knowledge BEFORE you enter into any real estate transaction, so you WILL know what you can do should the worst case scenario ever present itself in your life.
If you’re traveling during the Easter break, stay safe and enjoy the break.