Deciding to sell assets can be a very difficult decision. However, if you take too long to decide, the decision may be taken out of your hands (for example if the lender has a mortgage over the asset or has a court judgment). Get advice early so you can take control of the process and sell with dignity.

Mortgaged assets

If the lender has a mortgage over an asset you plan to sell, you must get the lender’s consent before selling it. As soon as you’ve decided to sell, the next step is to get written consent from the lender. If the lender refuses to consent, call us.

Home mortgage

The lender will usually give you time to sell your home if you ask.

• If you’re making the scheduled repayments and the sale of the home will cover the outstanding mortgage debt, then consent will be given.
• If you’re in financial hardship and have missed payments, you’ll need to negotiate a repayment arrangement with a clear plan to sell your house within a certain period of time. In most circumstances, the lender will work with you to make a repayment arrangement you can afford and give consent for you to sell your home. Refer to Home loans for more information about repayment plans.

The only situation where it may be difficult to get consent to sell your home is when the home loan debt is greater than the value of your home. Even in this situation, you can still get consent, but the lender may insist on a certain sale price.

Car loan

It can be very hard to get a lender’s consent to sell your car. This is mainly because the car is almost always worth less than the debt. You can still ask and negotiate with the lender. The lender is more likely to say yes if you’re getting a good price for your car and you can make an arrangement to pay any shortfall.

Assets with no mortgage

This situation is a lot simpler. You can just sell the assets as required and at your own pace.