July 25th, 2008

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How To Stop The Bank Foreclosing Your Home - Part 9 Debt Agreements

Banks are foreclosing homes at record numbers and with more interest rate rises on the cards, these foreclosure rates are only going to increase during this period. As you have already seen, it is possible to become like David and defeat Goliath (the banks). The are some important facts that you need to know about before you let the banks push you around.

We are going to cover the points as discussed in the interview with Today Tonight. So lets get started right away...

You will need to look at your situation in total, not just one problem. By this we mean, if you are going through financial difficulties right now, look at all your other debts. Are they secured debts, like your home loan or sometimes a car loan, or are they unsecured debts, like store cards and credit cards?

By far, the unsecured debts are going to cost you the most in the long run. You have options available to you immediately if you are being overcome by unsecured debt. Look into Part 9 Debt Agreements as this can give you a way of reducing your overal unsecured debts. The interest freezes immediately, and you normally reduce the overal unsecured debt to be 65% - 75% of the original debt size. The government came up with Part 9 Debt Agreements as an alternative for people who may normally go bankrupt.

If its a choice between servicing your mortgage loan or your unsecured debts, a Part 9 debt agreement can let you keep your home, provided you can keep making the payments, and then you can make one easy monthly payment to your debt administrator over 4 to 5 years. If you can afford your mortgage payments and one easy payment to your debt administrator, then Part 9 debt agreements could be your answer.

One important point to know, is that you will have your credit report noted as entering into a Part 9 debt agreement. Entering into Part 9 debt agreements will not stop you getting home finance in the future. You will normally need to be out of the Part 9 for two full years, before you can apply for a new mortgage. If you have managed to keep your home as a result, then you will win with all the capital growth you make over the coming years.

It will normally take seven years for the Part 9 debt agreement to be removed from your credit report, but the benefits seem to be much better then the negatives.

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