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Record Number Of Defaults On Mortgage Repayments. (Read 2525 times)
imcrookonit
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Record Number Of Defaults On Mortgage Repayments.
Nov 5th, 2010 at 11:28pm
 
Houses seized as mortgage defaults hit record


THE number of homes and businesses repossessed by banks has reached an all-time high in Queensland as record numbers of owners default on mortgage repayments.

Justice Department figures show lenders lodged 193 claims to repossess homes and businesses in the state's courts during August.

It is the highest monthly total since records began about 1992, surpassing the previous record set in April last year by 17 claims.

Lifeline financial counselling practice leader Ken Campbell said the figures were just "the tip of the iceberg" as many cases never made it to court.

He said a lot of people negotiated with banks to suspend their mortgage repayment on the condition the homeowner put their property up for sale.

"It technically becomes a de facto repossession because the owner knows that if they don't get the property on the market then eventually the bank is going to sell it from under them," he said.


Mr Campbell said counsellors were "bracing for another onslaught in demand" after the RBA raised the official cash rate from 4.5 to 4.75 per cent on Tuesday.

Real Estate Institute of Queensland managing director Dan Molloy said the August spike showed the typical lag between rate rises and the impact on homeowners.

"The series of six interest rate increases in the period from October last year to May this year has had a dramatic and tragic impact on some people," he said.

"The cumulative effect of those adding up to $300 a month on the average $300,000 mortgage obviously was too much for some people and the financial institutions moved."

The Justice Department figures show repossession claims peaked in 2008-09 at the height of the global financial crisis with 1759 cases, before steadying to 1612 cases in 2009-10.

This financial year looks set to be worse, with claims made between July and September topping 532 – 95 more than the same period in 2008.

Australian Financial Counselling and Credit Reform Association executive director Fiona Guthrie said many people tried to ignore their impending financial doom.

She said those struggling to meet repayments should call a financial counsellor and organise hardship arrangements with their lender.

Disputes can be referred to the Financial Ombudsmen Service.

"It means that debt-collection activity and legal action has to cease so it gives you a breathing space to sort it out," she said.



Comments on this story

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     army Posted at 12:59 PM Today

         there will be more poverty in australia than ever before,prices going through the roof ,i say get rid of the lab and lib gov and get some one in there who is going to look after the people,and i see pollies got another pay rise again,so whats that put them on 20,000 dollars a day,the way we are going this country is heading for a huge reccesion.

    *
     Garry Brock of Brisbane Posted at 12:54 PM Today

         You have to kinding me, Lace of the real world. A bank manager who lives in the real world, what a crock

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imcrookonit
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Re: Record Number Of Defaults On Mortgage Repayments.
Reply #1 - Nov 6th, 2010 at 12:05am
 
What wonderful caring banks we have in Australia.   Put interest rates up.   Make record profits.  Pay CEO's millions of dollars.  Im crook on it.      
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Deborahmac09
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Re: Record Number Of Defaults On Mortgage Repayments.
Reply #2 - Nov 6th, 2010 at 10:48am
 
If you are in trouble, you should talk to your bank, before you fall that far behind.
http://www.fido.gov.au/fido/fido.nsf/byheadline/Trouble-with-debt
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Sir lastnail
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Re: Record Number Of Defaults On Mortgage Repayments.
Reply #3 - Nov 6th, 2010 at 11:20am
 
Quote:
What wonderful caring banks we have in Australia.   Put interest rates up.   Make record profits.  Pay CEO's millions of dollars.  Im crook on it.      


A fallout from the Kevin Dudd stimulus package trying to inflate the property bubble in order to create a fake economy for 5 minutes Sad

I suppose lots of real estate maggots made a fortune out of exploiting gullible and vulnerable people Sad
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In August 2021, Newcastle Coroner Karen Dilks recorded that Lisa Shaw had died “due to complications of an AstraZeneca COVID vaccination”.
 
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Re: Record Number Of Defaults On Mortgage Repayments.
Reply #4 - Nov 6th, 2010 at 12:54pm
 
"Exploiting gullible and vulnerable people". These people approached the real estate agents. It's not the agents' fault that the customers didn't think things through properly.
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Deborahmac09
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Re: Record Number Of Defaults On Mortgage Repayments.
Reply #5 - Nov 6th, 2010 at 1:43pm
 
Sir lastnail wrote on Nov 6th, 2010 at 11:20am:
Quote:
What wonderful caring banks we have in Australia.   Put interest rates up.   Make record profits.  Pay CEO's millions of dollars.  Im crook on it.      


A fallout from the Kevin Dudd stimulus package trying to inflate the property bubble in order to create a fake economy for 5 minutes Sad

I suppose lots of real estate maggots made a fortune out of exploiting gullible and vulnerable people Sad



Same thing happened while Howard was in durring the 90's.
People got homeloans with first homebuyers being the only deposit.
Interest rates went up and people got into trouble with repayments.
People were able to borrow too much on to little deposit.
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freediver
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Re: Record Number Of Defaults On Mortgage Repayments.
Reply #6 - Nov 6th, 2010 at 1:47pm
 
I can't believe people are trying to blame the housing bubble on Rudd.

Think about it.
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It_is_the_Darkness
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Re: Record Number Of Defaults On Mortgage Repayments.
Reply #7 - Nov 6th, 2010 at 2:15pm
 
I might live in a Garage,
(I'm a Garage Writer Grin)
but at least I never 'committed' to a Home Loan and waste the 'quality' of my life for a 'House' of all things.
If anything, I would rather build my own (outta Straw) than buy some peice of crap (I've worked Commercial jobs and they are always 'budget products' charged at expensive prices and with short time-frames, are 'quickly' done, etc, etc)
for double the price.
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Sir lastnail
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Re: Record Number Of Defaults On Mortgage Repayments.
Reply #8 - Nov 6th, 2010 at 3:42pm
 
freediver wrote on Nov 6th, 2010 at 1:47pm:
I can't believe people are trying to blame the housing bubble on Rudd.

Think about it.


A lot of it was caused by Dudd !! Bloody useless idiots these governments Sad

http://www.debtdeflation.com/blogs/2009/03/22/fhb-boost-is-australias-sub-prime-...

...


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In August 2021, Newcastle Coroner Karen Dilks recorded that Lisa Shaw had died “due to complications of an AstraZeneca COVID vaccination”.
 
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Re: Record Number Of Defaults On Mortgage Repayments.
Reply #9 - Nov 6th, 2010 at 3:57pm
 
Quote:
What wonderful caring banks we have in Australia.   Put interest rates up.   Make record profits.  Pay CEO's millions of dollars.  Im crook on it.      


Isn't 'caring' and banks a contradiction in terms????

Maybe the banks should go back to the methods of the old days???

30+ years ago the only way to get a loan from a bank was to prove you DIDN'T need it....

Nowadays, if you prove you can't afford it, they offer MORE money...
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"I just get sick of people who place a label on someone else with their own definition.

It's similar to a strawman fallacy"
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Re: Record Number Of Defaults On Mortgage Repayments.
Reply #10 - Nov 6th, 2010 at 4:25pm
 
I still think the whole 'economic' thing is due to Zimbabwe of all things.

Whats worse than Mugabe using bad methods to provide for his 'own' people against the illegal ownership of their lands by British Colonialists
against
The UK laying seige (via UN empowerment) upon Zimbabwe and allowing millions of pro-UK supporters to starve to death or flee into further abuse as illegal immigrants into other nations.
??
...at least Mugabe tries to provide for his supporters.

INFLATION has gotta start from somewhere. Huh
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SUCKING ON MY TITTIES, LIKE I KNOW YOU WANT TO.
 
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Re: Record Number Of Defaults On Mortgage Repayments.
Reply #11 - Nov 6th, 2010 at 4:49pm
 
this is simply the NEW australia.
hate to be a racist, but, GO BACK to your own stupid cuntry.
DON'T POLLUTE OUR'S.
j.
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Re: Record Number Of Defaults On Mortgage Repayments.
Reply #12 - Nov 6th, 2010 at 6:29pm
 
Mortgage interest rates are still at very low levels historically so if anyone is having problems paying back their loans all it means is they got in over their heads and should learn how to manage their money and lives better.
One very big reason for the extra increases by the banks is that the international money market reckons our real estate is way over valued and are factoring in a collapse over the next 12 mths so our banks are paying a premium above the reserve bank rate for overseas money. That is why interest rates on deposits have increased and are close to mortgage interest rates.
Australian real estate has been way over valued for 10 yrs and the bubble has to burst sometime, are young people these days so stupid that they don't think more than a day ahead?
Dont blame the banks..they didnt force the price of housing up, the short sighted buyers did that all by themselves.
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Re: Record Number Of Defaults On Mortgage Repayments.
Reply #13 - Nov 6th, 2010 at 7:53pm
 
Why are people blaming Howard and Rudd for the first home buyers inflating, when it was the banks giving them the loans to be able to do so.

The days the banks went away from the 20% deposit, letting people borrow up to 105%.  Thats where the issue came from.

Blame the pollies all you want, but the banks played a far greater role.
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And why not, if you will permit me; why shouldn’t I, if you will permit me; spend my first week as prime minister, should that happen, on this, on your, country - Abbott with the Garma People Aug 13
 
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Re: Record Number Of Defaults On Mortgage Repayments.
Reply #14 - Nov 6th, 2010 at 7:58pm
 
Verge wrote on Nov 6th, 2010 at 7:53pm:
Why are people blaming Howard and Rudd for the first home buyers inflating, when it was the banks giving them the loans to be able to do so.

The days the banks went away from the 20% deposit, letting people borrow up to 105%.  Thats where the issue came from.

Blame the pollies all you want, but the banks played a far greater role.


Then why give the first home buyers grant to people ?? Why don't the Governments keep out of private enterprise ?
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In August 2021, Newcastle Coroner Karen Dilks recorded that Lisa Shaw had died “due to complications of an AstraZeneca COVID vaccination”.
 
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Re: Record Number Of Defaults On Mortgage Repayments.
Reply #15 - Nov 6th, 2010 at 8:05pm
 
Sir lastnail wrote on Nov 6th, 2010 at 7:58pm:
Verge wrote on Nov 6th, 2010 at 7:53pm:
Why are people blaming Howard and Rudd for the first home buyers inflating, when it was the banks giving them the loans to be able to do so.

The days the banks went away from the 20% deposit, letting people borrow up to 105%.  Thats where the issue came from.

Blame the pollies all you want, but the banks played a far greater role.


Then why give the first home buyers grant to people ?? Why don't the Governments keep out of private enterprise ?


The FHBG wouldnt have had the effect it did if banks werent so prepared to throw the cash around.

The FHBG was designed to kick start things, but it wasnt a sole driver.  People were using so called equity to buy up more properties as every second man and his dog tried to be a entrepener and bought up, slapped a coat of paint and some dodgy repairs and then resold.

Also, baby boomers 10 years ago were pretty damn cashed up and controlled the market very well.
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And why not, if you will permit me; why shouldn’t I, if you will permit me; spend my first week as prime minister, should that happen, on this, on your, country - Abbott with the Garma People Aug 13
 
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Re: Record Number Of Defaults On Mortgage Repayments.
Reply #16 - Nov 7th, 2010 at 7:59am
 
Quote:
The FHBG wouldnt have had the effect it did if banks werent so prepared to throw the cash around.


So you expect banks to deny people their own home for the macro-economic benefit of all? They are a business, not a charity, and not a moral guardian.

If the government subsidises and industry, and the industry responds, it is the government's fault for handing out the subsidy, not any of the individual players.
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Re: Record Number Of Defaults On Mortgage Repayments.
Reply #17 - Nov 7th, 2010 at 12:07pm
 
freediver wrote on Nov 7th, 2010 at 7:59am:
Quote:
The FHBG wouldnt have had the effect it did if banks werent so prepared to throw the cash around.


So you expect banks to deny people their own home for the macro-economic benefit of all? They are a business, not a charity, and not a moral guardian.

If the government subsidises and industry, and the industry responds, it is the government's fault for handing out the subsidy, not any of the individual players.


Then why not a first share buyers grant for mums and dads investors wanting to buy shares ??

The FHBG doesn't help the people it is supposed to, instead it feeds and fuels a bubble as well as lining the pockets of the real estate industry Sad
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In August 2021, Newcastle Coroner Karen Dilks recorded that Lisa Shaw had died “due to complications of an AstraZeneca COVID vaccination”.
 
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Re: Record Number Of Defaults On Mortgage Repayments.
Reply #18 - Nov 7th, 2010 at 12:31pm
 
Quote:
Then why not a first share buyers grant for mums and dads investors wanting to buy shares ??


Subsidies are a bad idea. It's just that first home buyers tug at the heart strongs a lot more than share market speculators.
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Re: Record Number Of Defaults On Mortgage Repayments.
Reply #19 - Nov 7th, 2010 at 1:05pm
 
freediver wrote on Nov 7th, 2010 at 12:31pm:
Quote:
Then why not a first share buyers grant for mums and dads investors wanting to buy shares ??


Subsidies are a bad idea. It's just that first home buyers tug at the heart strongs a lot more than share market speculators.


I don't think that is the reason. The Government gets lobbied by vested interest groups in the property industry such as the real estate institute and property developers etc. They capitulate to these interest groups who only have interests in lining their own pockets and the FHBG is a perfect vehicle to re inflate the bubble and get money back into the hands of these scabs.

Before Dudd tripled the FHBG property was on the decline. Where I live there were many for sale signs and vacant blocks of land for months on end. As soon as Dudd tripled the FHBG guess what happened ?? Those dormant properties started to sell and building commenced on the vacant blocks. You can't tell me that was just a coincidence ! Then add the changes to the FIRB to allow foreign speculators a cut of the action and the bubble was being pumped up again !! And what was the benefit to first home  buyers ?? None because it didn't matter if they lost out to property speculators as long as money was being pored into the system Sad
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In August 2021, Newcastle Coroner Karen Dilks recorded that Lisa Shaw had died “due to complications of an AstraZeneca COVID vaccination”.
 
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Re: Record Number Of Defaults On Mortgage Repayments.
Reply #20 - Nov 7th, 2010 at 3:45pm
 
freediver wrote on Nov 7th, 2010 at 7:59am:
So you expect banks to deny people their own home for the macro-economic benefit of all? They are a business, not a charity, and not a moral guardian.



What about a cosmetic surgeon? Any moral or ethical boundaries?
Any potentially negative impacts of their actions need to be assessed and addressed?

Lawyers?
Tradesman?
Charities?
Bureaucracies?
Retailers?

What about the above? does society expect a level of moral guardianship relative to an entity's impacts and rewards it gains? I suspect you would say yes.

But hell, because the banks play such an insignificant role nowhere near the base of our society they should not have to meet the same standards that you and I have to.

Money's just to damn sexy to criticise.
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Re: Record Number Of Defaults On Mortgage Repayments.
Reply #21 - Nov 7th, 2010 at 3:54pm
 


The banking and finance sector has been allowed to become gravely parasitic - not only do bankers and financiers produce nothing but they have been increasingly permitted, by lax laws and regulations, to tap into the financial life-blood supply of citizens and businesses...

It is time that most of these parasites were put out of our misery...
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Lamenting the shift in the Australian psyche, away from the egalitarian ideal of the fair-go - and the rise of short-sighted pollies, who worship the 'Growth Fairy' and seek to divide and conquer!
 
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Re: Record Number Of Defaults On Mortgage Repayments.
Reply #22 - Nov 7th, 2010 at 3:55pm
 
at the end of the day .. people have realized there are more in life than working hard to feed those greedy shark bank bosses and their families ..
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