Selling your property and the repossession process
About the repossession process
Repossession is when a bank takes possession and control of a property so that it can sell the property to reduce or repay the outstanding debt. It is a last resort - if we can’t get in contact with you or find a solution, the repossession process will begin. We will work to help you through this process. For example, if your property needs to be sold, we may be able to help you find a new place to live and may even be able to help you with rent. If you’re unsure at any time during this process, you should seek legal or financial advice. You can also talk to a financial counsellor for free.
The steps below outline the repossession process.
1. Default notice
A default notice will tell you how you are in default of your loan and how you need to fix it. For example, if the default is that you’ve missed repayments, we will give you at least 30 days to catch up on your repayments. We’ll usually only issue a default notice if you have missed some scheduled repayments and you aren’t already working with us to find a solution.
It's your responsibility to pay what is outstanding or let us know if you need more time.
2. Demand notice
If you can’t fix the default shown in the default notice, we will send you a demand notice that requires you to repay the entire loan balance. We’ll usually issue a demand notice if you aren’t already working with us to bring the loan up to date, or to find another solution to the default. You’ll need to tell us how you plan to pay the full debt. Options to do this could be to refinance, restructure your home loan to consolidate your debts, or sell your property. Another option may be to give the bank possession and control of the property so we can sell it to reduce or repay your debt.
3. Court proceedings and judgment
If you haven’t contacted us or if we haven't been able to come to an agreement our next step may be to commence court proceedings against you to obtain possession of the property. You'll receive a copy of the court documents which also contain instructions for you about the court process. If we do obtain orders from the court giving us possession of the property, you will need to comply with the orders by vacating the property when asked.
We’ll continue to be open to working with you to find a solution, and you can still make payment of the debt in full at any time before we sell the property.
4. Repossession and sale of your property
This is the last resort, and the most difficult step for our customers so we will always approach it with compassion.
If we're still unable to reach a solution, and you do not give us possession of the property when asked, the next step is a formal eviction from the property.
Once we have possession of the property, we’ll take steps to sell it at market value or for the best price we can obtain. You will not be involved in the sale process but we will tell you the outcome and how we deal with the sale proceeds.
After repaying all the costs, the remaining proceeds will be paid to the outstanding debt secured by the property, including all interest accrued. Any remaining surplus proceeds may be paid to you after other interests in the property are met.
Sometimes the proceeds of a property sale may not be enough to cover all outstanding debt and costs. If this happens and there is Lenders Mortgage Insurance, we may lodge a claim with the insurer and they may then contact you to seek payment. If there is no Lenders Mortgage Insurance, we may contact you to seek payment of any remaining debt.
If you're feeling overwhelmed with financial decisions, a financial counsellor can help you put a plan in place. Financial counsellors are qualified professionals who provide free, independent, and confidential information and advice to people in financial difficulty. Visit the http://www.ndh.org.au/, opens in new window or call 1800 007 007. The helpline is open Monday to Friday from 9:30am to 4:30pm (AEST/AEDT).
Other ways we can help you
Request financial assistance
If you’re having trouble making your repayments, you can request assistance.
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