You can lose your home easily like this:
1. Airplane Disaster
It is estimated there are between 8,000 – 13,000 planes in the sky at any given time. Air travel is very common and typically much safer than driving in a car, so it’s always shocking to hear when one crashes. An elderly couple had the fright of their lives when a cargo plane crashed into their living room shortly after taking off from Chicago’s Midway Airport.
Depending on where you live in Australia, your house could be subject to a flood after heavy rains. In December 2010, Queensland was hit with a series of floods that affected over 200,000 people. It was estimated the total damage to the state was worth $2.38 billion.
Australia is no stranger to bushfires. Every year we hear about the damage they cause to communities and the resulting loss of life. Bushfires do not just affect people who live in rural communities. In January 2015, a fire that begun in the outer northern area of Sampson Flat became out of control and moved dangerously close to metropolitan Adelaide. Close to 30 houses were lost in blaze. Amazingly, there were no fatalities.
4. Compulsory acquisition
As the population of our cities grow, it is natural to experience congestion as the existing infrastructure struggles to handle the increase in traffic. An important section of South Road in Adelaide is due to undergo a large upgrade and it is expected that 60 properties will be compulsorily bought by the government in this process.
5. Bank foreclosure
A more common way for people to lose their home is through bank foreclosure. This occurs when you fall behind with mortgage repayments and the bank repossesses your home from you. Low interest rates and an obsession with property has seen Australians leverage themselves like never before. Court figures show that the number of repossessions have been increasing over the past 5 years.
But – You’ll never lose your home because of a Reverse Mortgage
Unlike normal mortgages, Reverse Mortgages don’t require repayments.
As long as the borrower abides by some simple rules including:
- Maintaining upkeep of the home
- Having council rates paid up to date and
- Ensuring the property is insured…there’s no chance of a lender foreclosing on a Reverse Mortgage loan contract.
Even if over time the loan were to end up more than the value of the home, the lender cannot force the borrowers to vacate or sell their property.
Borrowers are protected by a ‘No Negative Equity Guarantee’ which all lenders provide as a standard feature of their loan contracts.