Home and Business repossessions hit an all time high

November 5th, 2010

The number of Queensland homes and businesses repossessed by banks has reached record levels.

Qld Justice Department figures for August indicate that lenders lodged nearly 200 claims to repossess  homes & businesses as record numbers of owners default on mortgage payments.  The figure of 193 repossession claims, is the highest monthly total since the early 1990s when records began.

And this figure is considered to be just a portion of the repossessions actually taking place as many cases don’t appear before court, with many property owners negotiating with banks to put their property up for sale to repay the debt.

With the recent increase in the official cash rate (the RBA increased if from 4.5 to 4.75% on Tuesday), and banks jumping to increase their rates (CBA shocked mortgage holders by increasing their rate by 0.45%), and with rates expected to increase in the coming months, the repossession rate is likely to get a whole lot worse.

Mortgage Holders struggling to meet repayments should organise hardship arrangements with their lender and consider contacting a financial advisor or counsellor for help.

Another option to keep the banks at bay, supplement your income, and help you to meet your mortgage repayments might be to consider renting out spare or unused space in your home or business.  If you have a spare bedroom, garage or shed, you may be able to rent it out and earn a couple of hundred extra dollars a month.

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