In 2009 more than 30,000 homes in Australia will be repossessed or foreclosed and almost half a million Australians plunged into severe mortgage stress by the end of the year, according to a new industry report.
Repossession Across Australia
Repossession occurs when you can no longer meet your mortgage repayments on your home loan and your bank or lender takes over your home and sells it in what is called a mortgagee sale. In an optimistic property market, this might well leave you with some money, but in a weak market, there’s a chance you will walk away with nothing.
One third of the expected repossessions will be first time home buyers who purchased their property in the last 12 months, the monthly Fujitsu Mortgage Stress report predicts.
A major contributor to the outstanding monies on mortgages is largely due to the rising unemployment rate in Australia. The Federal Government predicts the unemployment rate will rise to 7 per cent by mid 2010, which will see many more homeowners looking to refinance.
It is difficult not to think about the possibility of having your house repossessed, especially with the current state of the economy. Add this to the challenges faced when trying to balance your monthly budget, make home loan repayments, being concerned about your job, and the ever rising cost of living, the threat of foreclosure can be a major source of stress for homeowners.
Australian Lending Centre Managing Director, Mr Chris Riotto, urges home owners to seek financial assistance as soon as any sign of monetary stress begins to appear. As there are many options available such as refinancing your home loan.
At the Australian Lending Centre we have helped many clients who have been faced with the prospect of potential bankruptcy due to outstanding debt on their home loan. Luckily there is now a better alternative to this; it is called a Debt Agreement. Debt Agreements were put in place by the Australian Government as a solution to the rising percentage of Australians filing for bankruptcy, which was ultimately affecting the economy.
When it comes to foreclosure, there are many options today to help safeguard yourself and help give you peace of mind.
To speak with a Mortgage Consultant, or to find our more about applying for a Debt Agreement, please call the Australian Lending Centre today on 1300 138 188.