Miss A Payment Lose Your House.

Banks are ramping up repossessions of properties, selling off Queenslanders’ homes for mortgage repayment debts as low as $3000.
Legal Aid Queensland consumer credit lawyer Catherine Uhr said banks had adopted a tough new policy to quickly repossess the homes of clients who were in arrears by one or two mortgage repayments.

“We’ve seen a number of repossessions over arrears of under $5000, and some for $3000,” Ms Uhr said.
Claims for repossession of properties in Queensland have skyrocketed in the past few months, with 532 claims lodged in July, August and September in Queensland supreme and district courts. This compared with 448 claims for the same period last year.

“It’s a curse to be a Queenslander,” Ms Uhr said. “If you miss a mortgage payment they’ll sell you up.
“I’ve spoken to five people in the last three days who all have one thing in common – they owe between $3000 and $5000 because they’ve missed one or two payments.

“They all are rescuable.”

A Sunday Mail survey of 483 repossession claims by lenders, filed in Queensland courts between July 1 and November 4, showed the Commonwealth Bank was easily the most prolific litigant.
The Commonwealth had 160 claims, compared to Westpac (59), Bank of Queensland (59), NAB (54) and ANZ (33).

Ms Uhr said banks were moving quickly to foreclose instead of working out a plan to get people back on track with their repayments.
“They are failing to consider hardship applications and knocking people back for spurious reasons,” she said.

Read the full article in “Courier Mail”

This is way over the top I feel. Times are hard, businesses are closing or moving o/seas, people are losing jobs, regardless of what the Government is saying, this is reality. You would think that the banks would at least wave payments for 12 months, to allow people to try to find another job, or sell their home, rather than rip it out from under them. I know years ago, the banks used to give you a bit of breathing space if anything unseen happened in your life, seems this does not apply anymore. I’m also getting sick and tired of hearing how great everything is from this Government, and it maybe for some, but what about all those that are finding it hard? There are also a lot of people who may not have lost their job, but are now on casual instead of working full time, this also has a big impact on everybody.

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8 Responses to Miss A Payment Lose Your House.

  1. Spiral says:

    That’s pretty tough. I know a lot of people struggling to pay off the mortgage, losing jobs, juggling illnesses etc and to have the bank repossess the home is hard.

    Witch bank…

    • magsx2 says:

      Hi Spiral,
      Exactly, it is a lot of people, and most of the time when someone or a family lose their house it is through no fault of their own. There has been a lot of cases where someone has lost their job, or as you mentioned through illness, or losing hours at work which of course is less pay. Their definitely should be a fairer system that gives people time to at least try and save their homes, or sell them themselves. I personally feel this is terribly wrong of the banks to go down this path.

  2. Winton Bates says:

    I find this hard to understand. There is no reason to expect banks to be particularly kind-hearted, but it is hard to see why it would be good business to foreclose for such small amounts. Perhaps banks are able to charge substantial additional fees when they foreclose.

    • magsx2 says:

      Hi Winton,
      Remember that if you have less than (I think) it’s 80% deposit, you have to take out Mortgage Insurance. This insurance has nothing to do with covering the person taking out the Mortgage, it’s to cover the banks in case you default. This cost usually goes on top of your loan. This is one reason why banks never worry about covering the cost of the loan when they repossess, and the houses will sell for whatever the people on the day wish to pay. So really the banks never lose out.

      I don’t think people expect banks to be kind hearted, I think everyone or most people understand it’s a business, and it’s there to make money like any other business. But when dealing with peoples lives, a bit of compassion never hurt.

      Way back in the late 1980’s early 90’s when interests rates in Australia were around the 17% mark, I can remember a couple of friends that lost hours at work, but were lucky enough to still have a job. Neither of these people could pay their mortgage, bills, food etc. on the money they were earning. Both rang their banks immediately, and were put on a 4 mths hold on their mortgage repayments. Yes the Interest was still being put on, but it gave them a bit of breathing space. 1 friend was back to full time within 2 mths, the other friend got another job near the end of the 4 mths. Not only did they manage to keep their house, but both these people payed off their houses in the end, everyone wins.

      I don’t understand why this has changed, if at the end of the time period you still cannot manage to pay, then repossess.

  3. Winton Bates says:

    All that makes sense, Mags. I would have thought that the banks would like to avoid the adverse publicity associated with what seems like premature foreclosure.

    • magsx2 says:

      Hi Winton,
      You are so right, but bad publicity doesn’t seem to worry them at all. I mean they have been getting bad publicity every time they put the interest up above what is recommended. It really makes you wonder.

  4. gregoryno6 says:

    Banks were more understanding about borrowers’ difficulties once, but at the same time they were a lot tougher about who they lent to in the first place.
    Now they throw money at anyone and come on like attack hounds when you can’t repay.
    I think the old arrangement was preferable.

  5. magsx2 says:

    Hi gregoryno6,
    I totally agree, I also wish they still ran the banks like they did back then.

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