Mortgage Repossession
If you are struggling to pay your mortgage then you may find your home is at risk. Mortgage repossessions increased dramatically last year as interest rates soared. 
In mid- 2008 a report by Fujitsu Consulting showed that 250,000 households were experiencing 'severe mortgage stress', and predicted that by the end of 2008 as many as 900,000 households were likely to experience some mortgage stress. The pressure can lead to forced sales, missed repayments and foreclosure for many Australian homeowners.
Interest rates may have fallen in recent months but many households are still struggling and with the threat of job losses more households than ever may be facing financial stress. Let's look at the ways that you can protect yourself and your home.
What Can You Do?
The good news is there are many things that home owners can do to save their home from repossession. The first and most important thing is to contact your lender and negotiate an affordable repayment arrangement. If you are honest and open then you will find there is more room for negotiation.
If you do get a default notice then act on it immediately, as the lender can repossess your house within a very short period. Lenders who are members of the Code of Banking Practice or the industry body Mortgage and Finance Association are obliged to explain your options and what temporary relief or assistance might be available.
Those in temporary difficulty can contact the Uniform Consumer Credit Code (UCCC) and apply to extend their loan term to reduce regular repayments, and to postpone the date when payments are due.
If the lender refuses you a hardship variation, you can apply to have the matter considered by the relevant tribunal or court in your state. You could also complain to the lender’s External Dispute Resolution Scheme,
You may also be able to negotiate with your lender for other changes to your loan. The most important message to home owners struggling with their mortgage repayments is to act quickly. Don't just bury your head in the sand hoping it will go away. Talk to a mortgage broker about your options and act now to save your home from repossession.
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