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In Australia, foreclosure refers to the process of a lender repossessing a property due to the default of mortgage repayments by the borrower. These laws also apply to Turramurra, New South Wales. When a borrower consistently fails to make their payments, a lender can enforce their rights under the contract or seek court judgement to start foreclosure process.
There are several reasons you may need a lawyer when dealing with foreclosure. Firstly, if you're facing the threat of foreclosure, a lawyer can provide advice on how to deal with your lender, suggest options to avoid foreclosure such as refinancing or debt consolidation, and represent you in court if necessary. Secondly, if you’re the lender, you may need a lawyer to enforce your security rights and to ensure the foreclosure process is completed lawfully.
In Turramurra, as is in the entirety of New South Wales, the Conveyancing Act of 1919 and the Real Property Act of 1900 are the principal legislation governing foreclosures. The lender must first serve a Default Notice, which provides the borrower 30 days to catch up on payments. If payments are not made, the lender can take possession of the property without a court order, or seek a court order for foreclosure or sale.
The lender is required to deliver a Default Notice and you typically have 30 days to make the overdue repayments before the foreclosure process can commence.
Yes, you can halt the foreclosure process by paying the overdue amount, negotiating a new payment plan with your lender, or through lodging an application with the court to delay or dismiss the action.
Once the property has been sold, there is no opportunity for you to get it back. Therefore, it's imperative to act promptly if you receive a Default Notice.
If the property sells for less than the mortgage value, you will be held responsible for the remaining debt. This is known as a mortgage shortfall.
Renters can be affected if the property they reside in is foreclosed. However, the rights of tenants are generally protected and the new owners may decide to continue the lease.
The Australian Securities and Investments Commission’s (ASIC) website has an informative guide on handling mortgage stress and options to manage your mortgage. The NSW Fair Trading can also provide valuable information for tenants and landlords regarding foreclosure.
If you are facing a foreclosure, it is advisable to seek immediate legal representation. A lawyer can provide crucial guidance during this stressful time and explore all possible options to avoid foreclosure or minimize the financial impact. Ignoring the issue will not make it go away, instead, seek professional assistance early on to positively influence the outcome.
