VICTIMS OF DISASTERS- FLOOD-FIRE.
Flood and Fire victims with hefty mortgage debts and inadequate insurance are being told by some financial advisers to declare bankruptcy. Other financial counsellors say it could land them in more trouble, walking out on the mortgage and then trying to find a rental property could see you go from the frying pan into the fire.
Bankruptcy in the majority of cases after natural disaster is generally not the answer.
It's better to negotiate with your lender to reduce payments over a longer period giving you breathing space.
Other pitfalls of inadequate insurance cover.
owners will have breached the home loan contracts and will find there home could be repossessed. Home loans require adequate insurance.For those who cannot withhold the strain bankruptcy may be a relief in the short term.
If you think the floods and Fires are not your concern--think again.
Rising groceries, petrol, school fee, medical bills, utility costs rising, insurance rising all far greater than inflation we may all have to recalculate over spending.
Advise at this moment. re evaluate your insurances immediately.
Whether it be home, contents, car, income.
It's generally a good idea to find a rental before leaving your owner occupied. In realinto it takes more than 3 months for a bank to evict you from your property. But if you have any equity in your property you'd be an idiot to let the bank forclose, you'd might find yourself with a shortfall pretty quickly
ReplyDeleteThere is a lot of bad advise going around.
ReplyDeleteFirst step--Go straight to your present mortgage lender. Explain your current financial problem.
Ask for assistance. Before getting further behind.
It's much better to approach them first.
They may be more understanding and supportive than you think.
The idea is great.
ReplyDelete