Stop Your Bank Foreclosing With APRA

Today's article is about stopping your bank foreclosing. We are wanting people to know that they don't need to sit back and let the banks foreclose. You don't need to be forced into going bankrupt and you don't need to loose everything just because your bank is trying to push you around!

Is it possible to have your bank try to foreclose your home from under your feet, when you nearly own it? Well, as you saw on Today Tonight, that's exactly what one bank tried to do. If you know you can't afford to keep living in your home, due to changes in your income, there are better ways then letting a real estate agent sell your home for a song, or letting the bank foreclose.

We are going to cover how you may be able to get some financial relief from APRA. APRA oversee the superannuation of all Australian's who have a managed or self managed superannuation funds. Let's get started.

While it is sad to say this, many banks and mortgage companies "forget" to tell their clients that they can seek help from APRA, in order to prevent the bank foreclosing on your home. The thuth is, that you can get your mortgage loan out of arrears and stop your bank foreclosing. If you have superannuation available, the usual policy is for APRA to release enough funds to cover three months of mortgage arrears, and in most cases, they also provide you with an extra three months, to get you in front again. This is all dependant on you have enough superannuation available in the first place.

We have seen countless people avoid their bank foreclosing just by telling them how to apply their loan arrears to be fixed with the APRA application.

Lets say you were three months behind in your mortgage payments. Your bank is calling you and putting the pressure on (that's the collection departments job, but many could do well to learn to be more compasionate in the process). You simply tell the collections officer, that you are going to apply to APRA to do an early release of superannuation benefits. You then ask them to send you the required Default Notice with the standard letter that states how much you are in arrears, what twelve months of interest would total, the enforcement expenses and the amount of three monthly repayments.

The bank will know about these two required documents, and if your collections office does not know about it, ask to speak to their supervisor so you can clear these mortgage arrears as soon as possible.

It normally takes APRA seven working days to approve your application for early release of superannuation benefits. Don't be a pain and call them every day. Perhaps give them a friendly call after four working days, just to see how your application is going. They will then be able to provide you with a reference number for next time, should you need to call them again.

During this seven day period, don't wait for APRA to get back to you. Call your superannuation company and let them know that you have approval from APRA to do an early release of superannuation, on the grounds that your mortgage provider is looking to forclose your home due to your loan being in arrears. You should receive these application forms within seven days of you calling your superannuation company.

Complete this form to the best of your ability. If you are not sure about any part of either application, call APRA or your superannuation company and get them to clarify what you need to enter.

It should not take you more then three weeks to have these funds available to pay to your bank. During this time, make sure you call your bank or mortgage company to let them know that your application has been approved. Basically tell them every step you have done, and this will hold them off, and most importantly, stop them calling you to make your life more stressed.

Once you have received your money, you will then need to decide what you want to do. Can you code with continuing to pay your mortgage, or do you need to now sell your home, without the pressure of being in arrears with your mortgage?

We hope this article has helped you to see some alternatives to prevent you selling your home at a really low price.

The key points in this article is letting your bank know right away that you are applying for early release of superannuation, so you can apply to APRA, and get the money you need from your superannuation company, to bring your mortgage back into a positive balance.