FALLING house prices, according to a Courier Mail report by News Limited National Social Editor Natasha Bita, have driven one in 40 households to the point where more money is owed to the bank than a home is worth. We at Mitchells are painfully aware of this disturbing phenomenon which is part of what has been described as “mortgage stress”. Seeing solicitors such as ourselves may be the first step in getting (or keeping) out of financial trouble. We are only a phone call away. Here is part of Natasha’s report, followed by a story from the Gold Coast where a mortgagee bank has taken possession of a property and put it on the market for sale:
The Melbourne Institute’s federally-funded Household, Income and Labour Dynamics in Australia survey, to be published today, reveals the proportion of homeowners with “negative equity” jumped 60 per cent during the global financial crisis.
The new data shows that one in every 40 families with a mortgage in 2010 owed the bank more than what their home was worth.
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