Can a Bank Sell Your House While You Are Under Debt Review?
If your home loan is included in debt review and you maintain your restructured payments, the bank is generally restrained from proceeding with a sale in execution of your property. However, if payments are missed or the bank had already obtained judgment before debt review, the protection may not apply. Acting early is vital to protect your home.
Key Points
- Maintaining payments restrains sale in execution on included loans.
- Missed payments can lead to resumed enforcement.
- Prior judgment may exclude the loan from protection.
- Act early to protect your home.
This article provides general consumer information and is not legal advice. Individual circumstances differ. If legal proceedings have already started, obtain advice relevant to your specific circumstances.
How debt review protects your home
When your home loan is included in debt review and you maintain the restructured payment, the bank is generally restrained from proceeding with foreclosure and a sale in execution. Your debt counsellor restructures the bond alongside your other debts so that the repayment is affordable.
Often, reducing unsecured debt repayments frees up funds to maintain the bond, which is the priority for keeping the home.
When protection can be lost
If you miss restructured payments, the bank may issue a termination notice and resume enforcement, which can ultimately lead to a sale in execution. If the bank had already obtained default judgment before you entered debt review, that loan may be excluded from the protection.
This is why entering debt review before legal proceedings advance is so important for homeowners.
What to do if you are worried about your home
If you are falling behind on your bond or have received legal notices, contact a debt counsellor immediately. If debt review is entered before judgment, the home loan can generally be included and the home protected while payments are maintained.
Do not wait for the matter to escalate — the earlier you act, the more options you have.
Frequently Asked Questions
Worried That Your Debt Has Become Unaffordable?
Debt Guidance can assess your income, essential expenses and debt commitments to determine whether debt review may be appropriate.
Reviewed by Carolina Guevara Harris
Registered Debt Counsellor · NCRDC3152
Last updated: 17 September 2025
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