Is it important that I take action immediately to stop the
repossession happening?
This is a
question that answers itself. YES, you must act NOW because the faster you take
action the more chance you have of a favourable outcome.
I am in arrears and the financial institution is demanding that I
pay the whole of the arrears immediately but I do not have it all. Can you
help?
This is a common tactic the financial institutions use to scare you. We may
be able to help but we need to find out more about your situation.
If the financial institution repossesses my property, how much extra
will they add on to the costs?
That is hard to say because different institutions have different charges
& fees. You can be assured that you will have significant legal charges that
in many cases will be 10’s of 1,000’s of dollars.
If the financial institution repossesses and sells my property
for me, will I get some money back from them if there is more than enough
equity to cover their costs?
Yes you will but unfortunately if the financial institution sells your
property for you, they do not care if you have a fair amount of equity in your
property. They only care to recover their costs. We have witnessed many
properties being sold by financial institutions at up to 40% below the value.
Their priority is not you, their priority is them. As long as they get back
all their costs, they do not care what your property sells for. If you are in
this situation, we believe it is wise to try to sell the property yourself.
What happens if they sell my property and it does not cover all
their costs?
If this situation arises, they will come after you for the remaining
balance.
Why is the loan I have going up in costs and interest so much?
There can be many reasons. If you are in arrears financial institutions
charge you a default rate. This rate can be up to 10% more than the standard
rate you are on. They will keep you on this rate until the arrears is paid back
in full.
They will also charge you for the solicitor’s fees and costs which as you
would already be aware, are extremely expensive.
Also, they will continually charge you legal fees to have letters and correspondence sent to you. This can be more than $1,000 at a time, which is significant considering they may send you many letters and correspondence during this period.
