For most people, selling your home in order to recover from a difficult financial situation is seen as a last resort.
Before making such an important decision, there are other things you may want to consider to help you get back on track.
If none of these options are suitable, then selling your house may be the right option to consider. If you decide that this might be the right way forward, we can help.
Everyone’s situation is different, and we will work with you to establish an appropriate time frame, taking into consideration the feedback from your real estate agent. The average timeframe is around 3 months.
If you’re unsure how to go about selling your home we can help. At Pepper Money we have teamed up with a property services business called Agent Select www.agentselect.com.au. This is a completely free service for you to use, and in case you were wondering, Pepper Money receives no financial benefit if you choose to use them.
Agent Select can support you through the often stressful and complex journey of selling your property. They will provide you with free, independent advice and guidance if you are considering a property sale. They can advise you on the property market conditions (sale and rental) in your local area, property value trends, provide free property reports and information on local real estate agent fees.
Agent Select can coordinate property sale appraisals with a number of the top performing local agents, and deliver a simple comparison report which helps you to make your own decision about whether to sell, rent or simply better understand the options available to you.
If you think you have negative equity in your property (this means that your home loan is larger than the current value of the house), and you are thinking of selling your home please talk to us about your options – there may still be a way forward.
You can arrange to sell your home through a real estate agent of your choosing. You just need to let us know that’s what you intend to do. The proceeds of the sale will go towards paying out your loan, and of course, you keep any surplus funds.
We understand. Coming to terms with selling your home when you don’t want to, is really hard. The important thing is, don’t wait until it’s too late. When interest is accruing on your home loan it is eating into any equity you have built up in your home. You could also run the risk of your home being repossessed. Repossessing a home is the last thing we want to do as a lender. We encourage you to keep in contact with us so that we can work with you to consider the options available to you.
John and Esther had a home loan on a property in Currans Hill, NSW. After a long period of unemployment, they had got pretty behind on the mortgage and had reached a point where they were simply unable to continue making repayments. It was a tough situation.
The team at Pepper Money had kept in regular contact with them throughout, keeping an eye on their situation and talking to them about their options for around 6 months. As it became clear that things were not improving, the team spoke to them about alternatives and next steps, one of which was to talk to a financial counsellor.
Having got that third party professional advice and after thinking things through John and Esther finally decided that it was necessary to put their home up for sale. They were both reluctant and very sad to lose their home, but they were also clear that they needed the financial relief they would gain by selling the house.
With the decision made they then appointed a real estate agent to sell their property. To make things easier and to feel more settled they also found a new rental property to live in while the sale process went ahead. Pepper Money were able to help that happen by paying the bond on the new rental accommodation and the removalist fees they needed to get there. These costs were able to be added to the overall outstanding loan balance.
At the time of making the decision to sell, the property was worth approximately $400,000. Their real estate agent advised that by investing in repairs worth about $15,000 they would be able to realise a significantly better price. Again, Pepper Money were able to help and fund the repairs recommended, adding the cost to the loan total.
Within three months, the property successfully sold for $460,000. Following a 1 month settlement and taking into account the couple’s unpaid loan payments and all fees (including bond, removalist fees and maintenance costs) John and Esther received a final payment of around $129,000 from the sale, which gave them the financial freedom they needed to move on with the rest of their life.
Our team is here for you.
We will stay in touch with you throughout the whole process giving you the information you need for each step of the process.
If you’d like to speak to someone independent, financial counsellors provide a free, independent and confidential service. They are available in every State and Territory. You can find a counsellor by visiting www.ndh.org.au or by phoning them on 1800 007 007. You can also find a lot of helpful financial information on www.moneysmart.gov.au.
Don’t hesitate to get in touch with us to talk this through. We are here to help.
This article provides you with factual information only and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licensed financial or tax adviser. Neither Pepper nor its related bodies, nor their directors, employees or agents accept any responsibility for loss or liability which may arise from accessing or reliance on any of the information contained in this article. For information about whether a Pepper loan may be suitable for you, call Pepper on 13 73 77 or speak to an accredited Pepper Money broker.
All applications are subject to the credit provider’s credit assessment and loan eligibility criteria. Terms, conditions, fees and charges apply. Information provided is factual information only and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licensed financial or tax adviser.
©Pepper Money Limited ABN 55 094 317 665; AFSL 286655; Australian Credit Licence 286655 (“Pepper”). All rights reserved. Pepper is the servicer of home loans provided by Pepper Finance Corporation Limited ABN 51 094 317 647. Pepper Asset Finance Pty Limited ACN 165 183 317 Australian Credit Licence 458899 is the credit provider for asset finance loans.