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Protecting The Family Home When Debt Becomes Uncontrollable

11/19/2018 5:00:40 PM Home Loans Protecting the Family Home When Debt Becomes Uncontrollable

Protecting the family Home when Debt becomes uncontrollable.

Negotiating Debt when you can't get a Home Loan Approval for enough to consolidate your debts.

When things go wrong Debts can mount up quickly. Compounding Interest can increase debts to levels that are not sustainable.

When we have to Consolidate Debts in a Difficult Financial Situation, generally speaking we can only use up to 80% of your homes valuation. And that will be an official valuation which is not as optimistic as a Real Estate Agent may be.

So what options are available, if your approved Loan amount is not enough to cover all the Debts.

The first thing we need to look at, is negotiating with your creditors to see if they will take a lower amount as full settlement. If they haven't been getting paid, the debt has gone to collections or it looks like it is going to remain a problem for some time, this may be attractive option to them. The issue will be resolved and it can be taken off their books.

If the Debts  can't be settled with a Home Loan Refinance we may then look at a Debt Agreement or Informal Arrangement to consolidate the Debts into one payment, that is affordable,  Freeze or minimise the interest and start lowering the Debt level down and work to clearing it all together.

More information on Debt Agreements is available at Fastdebthelp.com.au/DebtAgreements    However to qualify, you may only have  around $112,000 dollars of equity per person on title. If you have more than that you don't qualify. Also if you earn too much you won't qualify.  Or if you have too big a debt you may not qualify.

In those cases and where a Debt Agreement may affect work prospects, we will look at negotiating directly with your creditors to create an Informal Arrangement. More Information at FastDebtHelp.com.au/Informal arrangements. If you have tried to refinance and have not been able to, this can often create a solution that will enable you to keep the family home.

What happens if the situation is so bad it can't be fixed with payment plans, Debt Agreements or refinancing.

Sometimes it can still be arranged to keep the family home if one partner has to go Bankrupt. In these instances each scenario is unique and it would have to be discussed directly with Fast Debt Help and the Trustee. 

Your consultant can help with further enquiries Ph 1800 825 010 

 

 

 

 

 

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