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 Home owners buckle under debt burden 

Home owners buckle under debt burden

09 May, 2009 05:00 AM
Illawarra mortgagees are losing their properties at the rate of one a week.

And another two every week are being warned they are on the brink.

Figures provided by the Sheriff's Office reveal the number of Supreme Court writs of possession issued in the Illawarra last year jumped to 162.

That represents a 25 per cent increase on the previous year.

The statistics also show the stress that developed in the mortgage-belt suburbs such as Albion Park and Dapto.

The number of writs issued in Albion Park's 2527 postcode jumped from 11 in 2007 to 25 last year, while the 2530 postcode which takes in Dapto, Haywards Bay and Horsley rose from 14 to 24. The number of writs issued in the Kiama area jumped from three in 2007 to 18 in 2008 (see breakout).

The figures also show a shift in the writs issued from the Illawarra's north to the south.

In 2007 it was Wollongong (22) and the suburbs with a 2518 postcode, Bellambi and Corrimal (17), which topped the list.

Repossession applications included family homes, investment properties, vacant land and commercial properties, but didn't always result in repossession.

According to the Sheriff's Office a total of 53 of the 162 were "executed" in the Illawarra last year.

And it is not just home owners who face eviction, as tenants can also find themselves caught between a property owner and lender.

Interest rates rose to their highest levels in more than 11 years in March last year but since September the Reserve Bank's official cash rate has dropped from 7.25 per cent to 3 per cent.

Although the interest rate cut has provided relief, concerns have now turned to job security.

The Illawarra's unemployment rate, which takes in Wollongong, Shellharbour and Kiama, had risen to 9.1 per cent in March this year.

Simon Howard, solicitor with the Illawarra Legal Centre, said the centre had seen an increase in inquiries about termination of employment covering redundancy, entitlements and unfair dismissal.

"Casual workers are the most vulnerable in this current climate and they are contacting the legal centre with questions about their rights and entitlement," he said.

"Our concern is that those who are losing their paid employment may in turn lose their home if they are unable to meet their mortgage repayments or face other hardships as a result of losing a steady income.

"We urge anyone in this situation to get sound advice early on to limit their debts and find necessary social supports."

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Date: Newest first | Oldest first
Sounds like the flip side of the West Dapto Land release.

Very much a worry for people defaulting on mortgages and the prospect of losing jobs.

I should know, as I lost my job in the printing industry 10 years ago as companies folded at the drop of a hat through bad management, then where ever I went, it was a case of last one on, first one off.

So all this unemployment and losing jobs is certainly nothing new, just more publicity.

As for defaulting mortgages, I listened to using the equity in your property, and have now lost over $250,000 because the investment company folded.

Turns out they invested in things like golf resorts...hmmm.

So be prepared to see defaulting mortgages anywhere in the Illawarra.

No place is safe.

AND DON'T USE YOUR EQUITY!

Posted by Alan Bond, 9/05/2009 9:06:29 AM
Pity there are not more property-investment philantropists.

They could buy a property from its struggling owner/occupier and rent it back to them so they don't lose face, have to move, and lose everything as well.

Just thinking.

Posted by Fergie, 9/05/2009 2:17:04 PM
It's pure fantasy if anyone thinks an investor will help anyone keep their house by buying it off them and renting it back to them! That's a good one.

However, in my case, I believe I will be able to still live and meet debts in my situation, simply by going without, and no family to worry about. So I consider myself lucky, unlike most people. But still a lesson about equity, and learn to do without.

Posted by Alan Bond, 11/05/2009 8:27:11 AM

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