Melbourne, Australia (PRWEB) February 18, 2013
It goes without saying that bankruptcy is something that nobody ever plans for or wishes; indeed, bankruptcy can have a number of negative and far-reaching effects, not the least of which is the difficulty that those filing for bankruptcy can have in making their mortgage payments. In a recent Fox Business report, one individual asks for guidance, and wonders whether a bankruptcy court might offer some assistance with making those home loan payments. The report, and the guidance contained within it, have earned a comment from Thomas Reeh.
Thomas Reeh is a financial services veteran, and has worked in Australia’s financial planning industry for more than two decades. Reeh is particularly zealous about providing consumers with products that will protect their mortgages and their long-term financial interests. He has weighed in on the Fox article with a new statement to the press.
“This is a really difficult set of circumstances,” offers Thomas Reeh in his press statement, noting the sobering issues brought up in the Fox Business article. He goes on to observe the steep odds that consumers face when they seek assistance from bankruptcy courts or from home lenders. “It would be virtually impossible for a lender to reduce the principal of a loan,” he affirms. “Doing so would mean incurring a write-off on their balance sheet, and this is unpalatable from a shareholder perspective.”
There are further issues that muddy the waters, Thomas Reeh continues. “There is also the added complexity of setting a precedent that others could follow, and losses for the lender would quickly mount,” he notes.
Nevertheless, Thomas Reeh advises homeowners in dire financial situations to be proactive in approaching their mortgage companies, noting that honesty and transparency can sometimes go a long way. “Ultimately, my counsel is that the best option is to simply be honest with your lender,” the financial services veteran says. “We know from experience that lenders are fearful of adverse publicity, and repossessing your home when your husband is disabled is the sort of thing that could make national news.” In other words, Reeh says, lenders might be willing to work toward a compromise or an installation payment plan, if it means they can avoid nasty or drawn-out legal battles.
The Fox Business article offers similar advice. The report notes that, in most cases, the best thing a homeowner can do is to continue applying for loan modifications, and to hope that the sheer plurality of homeowners facing tough financial circumstances will make lenders more benevolent.
Thomas Reeh is a financial services leader whose zeal is to safeguard the long-term financial security of clients throughout Australia.
Thomas Reeh is a financial services professional with more than 21 years of experience. He currently works in a managerial role, overseeing the practices of some 300 financial planners across the Melbourne and Tasmania areas. He is also a staunch supporter of The Future2 Foundation, a non-profit group established by members of Australia’s financial services profession. The Future2 Foundation seeks to make a difference in the lives of Australia’s underprivileged young people.