Take action now, before you receive a Property Law Act (PLA) notice
What happens if I receive a PLA notice?There are two stages to the PLA (Property Law Act) process. The first is a Lender calls up the arrears and sets a time for them to be paid. Secondly, if these are not paid, then the Lender can issue a formal demand for the whole amount and unless this is paid, they can instruct a Real Estate Agent to sell your home at Mortgagee Sale. Doing nothing is not an option – it’s vital that you seek professional help immediately.
Why would I receive such a notice?Usually it’s because the Lender has failed to collect the due payments and you have therefore defaulted. It could also be the end of the term, if a short-term loan was put in place, or it could be because of you putting a Caveat or Second mortgage in place without consent. Whatever the reason, it’s a serious situation and needs to be remedied immediately.
What information is in a PLA notice?It will list the defaults under the mortgage agreement (deed), the amount of arrears and/or full payment due, including arrears and penalties and finally the deadline date. It may contain other information and you are well advised to seek legal advice.
What happens if you do nothing?
Doing nothing is not really an option, as if you do nothing there is every chance you will lose your home.
The Lender will seek to take your property to a Mortgagee Sale and although the property may sell, it will almost certainly be at a lower figure than if sold in the traditional manner.
You will also incur extra costs and your credit file will be affected for years to come.
Get legal advice as soon as possible
This will enable you to get a better understanding of what’s happening and be better prepared or able to negotiate with your Lender. At the very least you will know exactly what the process is and what you can do to mitigate its effects. Your legal representative can also check that the Lender has followed the very strict rules around the issue of a PLA. Advice can also be sought from your local CAB.
Talk to your Lender!
If you haven’t already, this is the best thing to do, as you may find that they can come up with a solution. If it’s too late, then at least you know you have done everything possible and are better prepared for the next step.
See if you can refinance your loan
The chances of another Bank taking you on are remote. However there are plenty of Non-Bank options out there and this is where a specialist Mortgage Broker, like iLender comes in. ILender knows which Lenders can be approached and how to present your situation in the best possible light. Often these solutions are short term and the aim is always to either delay the sale or create a situation whereby you are back with a mainstream Lender as quickly as possible. iLender has over 30 years’ experience in solving complicated applications, hence our term ‘Financial Paramedic’.
Do you need to sell now?
There is always an option to sell your property on your own terms. The timing is critical, so once you have sought advice from your legal people and a Mortgage Adviser, you will be better placed to make that decision. Making no decision is the worst outcome because the Bank will make it for you and the results can be financially disastrous. There may be short term options with family members buying the house, a short term refinance or simply a restructuring. Ultimately the responsibility and decision is yours. iLender is here to help you every step of the way.
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