Mortgage Stress On The Rise Despite Low Interest Rates

Step 1- Send letter
Send you a letter or contact you when you miss a repayment.

Step 2 – Default Notice
Send you a default notice. This default notice will give you at least 30 days to catch up on your missed repayments and any payment that falls due within the 30-day notice period.

During this 30-day notice period, you can:

• Pay the amount you oweand any repayment that falls due during the 30-day notice period.
• Ask your lender to temporarily reduce or delay your repayments, and have this confirmed in writing. This is called a hardship variation. If you are not happy with your lender’s response and if you don’t have time to complain to their internal dispute resolution department, you should lodge a dispute with theFinancial Ombudsman Service(FOS) – 1800 367 287 orCredit and Investments Ombudsman(CIO) – 1800 138 422.
• Sell your houseif your financial situation is unlikely to improve. You will need to speak to your lender about this decision and they may ask for copies of proof that you are selling your property, like the contract of sale and any advertisements.

If you don’t take any of these steps before the 30 days expires, your whole loan becomes due and payable at the end of the 30 days, and your lender can start legal action to take possession of your house to sell it to repay your home loan.

Note: If your property is rented, vacant or undeveloped land, the lender can take possession without going to court. So, if you receive a default notice you must act.

Step 3 – Statement of Claim
When your default notice period expires, your lender may serve you with a Statement of Claim or Summons for the debt or for the possession of your house. This will give you a limited fixed number of days (depending on your state or territory) from the date the court document is served on you, to file a defence.

Get legal advice urgently.Free legal adviceis available in each state and territory.

If you haven’t already done so, you can lodge a dispute with theFinancial Ombudsman Service(FOS) – 1800 367 287 orCredit and Investments Ombudsman(CIO) – 1800 138 422.
If you do nothing, your lender can obtain a court order to take possession of your house.

Step 4 Apply for writ
Apply for a writ (a court order) to take possession of your home.

Step 5 – Sheriff letter
Send you a letter telling you to move out and when a Sheriff will come to change your locks. This is also known as a Notice to Vacate.

Step 6 – Eviction
Send a Sheriff to your home to evict you and change the locks.