Can not pay my mortgage?

What can I do if I can not pay my mortgage or If I am behind or in arrears in paying my home loan?

If you are having problems or challenges or just can not afford to pay your mortgage or your home loan, the best thing you can do is be proactive and look at all your options. Doing nothing will only lead to more pain in the near future.

1.  Speak to your Lawyer and book a meeting to go through the options with them.

2.  Refinance, or change banks and extend the term of your loan, for example extend the term of the loan from 20 to 30 years so the payments are smaller. Changing to weekly instead of fortnightly or monthly payments may also assist.

3.  Ask your bank or lender to give you a lending holiday (subject to banking agreement and their discretion) whereby you don’t have to make repayments, however interest usually still accrues during this period.

4.  You may be able to ask your bank if you can change to interest only payments and therefore reduce your payments.

5.  If there are no other options you could sell your house. At least you will not have to pay the banks Lawyers to go through the mortgagee process and be charged huge fees, sell when they choose and for a price that you probably don’t want. Take control and be proactive.

6.  Seek budget advice.

7.  Perhaps take a Kiwi-saver contribution holiday until you can afford to pay your loan.  

8.  If you have received a Property Law Act Notice, then come and speak to us. 09 267 2700 or email richard@integritylaw.co.nz