IS THE BANK THREATENING TO SELL YOUR HOME BY SUE STEEL Across the region, we are seeing a worrying rise in mortgagee sales, where the bank steps in and forces a property to be sold because the borrower has defaulted on their mortgage. It is a devastating situation, and one that is becoming far too common. For the property owner, there is not just the emotional toll of losing their home, but also the harsh financial consequences that follow. In a mortgagee sale, the bank controls the process entirely. They choose the real estate agent, the sale method, and the price. You, the owner, have virtually no input. These properties often sell below market value, and after legal costs, interest, penalties, and selling expenses are deducted, there is often very little, if anything, left for the owner. The damage to your credit rating can last for years, affecting your ability to borrow in the future. To make matters worse, the process is public, and many clients describe the experience as humiliating and incredibly stressful. Despite how grim that sounds, there are steps you can take to avoid it, but timing is everything. The sooner you act, the more options you will have. Waiting too long can mean the bank's enforcement process is already underway, and your ability to negotiate is severely limited. If you have fallen behind on mortgage repayments, or know that you soon will, do not bury your head in the sand. The most important thing you can do is acknowledge the position you are in and seek help early. It is also essential to be honest with your lender. Making promises you cannot keep, like agreeing to pay arrears by a date you know is not realistic, will do H more harm than good. Banks are more likely to work with you if they believe you are acting in good faith. I regularly advise clients to maintain open communication with their lender and, where appropriate, provide evidence that they are actively trying to sell the property. That might include confirmation of a listed agent, updates on inspections or offers, or simply progress reports. These steps demonstrate your willingness to cooperate and, in many cases, can buy you time. I recently acted for a client who realised early that they were in financial trouble. Instead of ignoring the signs, they engaged with their bank, made full disclosure, and obtained time to arrange a private sale. They avoided the mortgagee process entirely, kept control of the sale, and were able to present the property in the best possible light, resulting in a far better outcome than a distressed fire sale. That said, this is not always a smooth path. Selling under financial pressure is incredibly difficult. But if you can control the timing and method of sale, the long-term benefits are significant, including a reduced impact on your credit score and the ability to move forward on your own terms. Mortgagee sales are a race against time. Delay only increases your losses. Interest compounds, legal fees build, and the bank's patience wears thin. But if you stay realistic, move quickly, and keep your lender informed, you might avoid the worst of it. And if you are unsure where to start, early legal advice can make all the difference. If you are concerned about missed repayments or feel the bank is circling, do not wait for a letter of demand. Call Stacks Law Firm Tamworth on (02) 6767 2000. We can help you understand the next steps, work with your lender, and support you through the process before it escalates. STACKS SUE STEEL 02 6767 2000 1 Fitzroy Street Tamworth stacklaw.com.au STACKS LAW FIRM AW7447238 IS THE BANK THREATENING TO SELL YOUR HOME BY SUE STEEL Across the region , we are seeing a worrying rise in mortgagee sales , where the bank steps in and forces a property to be sold because the borrower has defaulted on their mortgage . It is a devastating situation , and one that is becoming far too common . For the property owner , there is not just the emotional toll of losing their home , but also the harsh financial consequences that follow . In a mortgagee sale , the bank controls the process entirely . They choose the real estate agent , the sale method , and the price . You , the owner , have virtually no input . These properties often sell below market value , and after legal costs , interest , penalties , and selling expenses are deducted , there is often very little , if anything , left for the owner . The damage to your credit rating can last for years , affecting your ability to borrow in the future . To make matters worse , the process is public , and many clients describe the experience as humiliating and incredibly stressful . Despite how grim that sounds , there are steps you can take to avoid it , but timing is everything . The sooner you act , the more options you will have . Waiting too long can mean the bank's enforcement process is already underway , and your ability to negotiate is severely limited . If you have fallen behind on mortgage repayments , or know that you soon will , do not bury your head in the sand . The most important thing you can do is acknowledge the position you are in and seek help early . It is also essential to be honest with your lender . Making promises you cannot keep , like agreeing to pay arrears by a date you know is not realistic , will do H more harm than good . Banks are more likely to work with you if they believe you are acting in good faith . I regularly advise clients to maintain open communication with their lender and , where appropriate , provide evidence that they are actively trying to sell the property . That might include confirmation of a listed agent , updates on inspections or offers , or simply progress reports . These steps demonstrate your willingness to cooperate and , in many cases , can buy you time . I recently acted for a client who realised early that they were in financial trouble . Instead of ignoring the signs , they engaged with their bank , made full disclosure , and obtained time to arrange a private sale . They avoided the mortgagee process entirely , kept control of the sale , and were able to present the property in the best possible light , resulting in a far better outcome than a distressed fire sale . That said , this is not always a smooth path . Selling under financial pressure is incredibly difficult . But if you can control the timing and method of sale , the long - term benefits are significant , including a reduced impact on your credit score and the ability to move forward on your own terms . Mortgagee sales are a race against time . Delay only increases your losses . Interest compounds , legal fees build , and the bank's patience wears thin . But if you stay realistic , move quickly , and keep your lender informed , you might avoid the worst of it . And if you are unsure where to start , early legal advice can make all the difference . If you are concerned about missed repayments or feel the bank is circling , do not wait for a letter of demand . Call Stacks Law Firm Tamworth on ( 02 ) 6767 2000. We can help you understand the next steps , work with your lender , and support you through the process before it escalates . STACKS SUE STEEL 02 6767 2000 1 Fitzroy Street Tamworth stacklaw.com.au STACKS LAW FIRM AW7447238