Forced Sales-A tale of two stories

Consider these statements from the same news article today: Record mortgagee sales near six a day (link below)

  • Terralink managing director Mike Donald said the figures were “genuine cause for concern” and worse than during the same period in 2010, at the height of the recession.
  • BNZ chief economist Tony Alexander said the mortgagee sales figures held little correlation with the buoyant property market and “Anyone who has paid attention to Terralink data over last four years has been grossly misled.”

Once again, it appears we see news articles slanted for one purpose only: to create a headline … and never mind the facts. While of course it is true that mortgagee sales are of concern, they represent only a tiny proportion of the total housing stock.

During the boom years mortgagee sales were happening frequently so what’s new? Most of the mortgagee sales nowadays are for properties in depressed areas, or bare land from failed developers, or those unfortunates who bought slum properties encouraged by snake oil  spruikers who talked them into buying them.

Moral: Keep things in perspective, and don’t buy anything without first obtaining genuine independent advice from qualified advisers.

Record mortgagee sales near six a day

09/06/2012 | Lane Nichols   stuff.co.nz

A record number of property owners are being forced to sell up as banks move to foreclose in mortgagee sales.
New figures published today by Terralink International show there were 524 mortgagee sales in the first three months of this year – the highest first quarter number on record and almost six a day.

Terralink managing director Mike Donald said the figures were “genuine cause for concern” and worse than during the same period in 2010, at the height of the recession.
They indicated the economy was still struggling to pick up and he expected more cash-strapped homeowners to lose their properties in forced sales.
“How many other properties are close to being forced into this situation? We can’t answer that question.
“The concern is that while we think we may be through the effects of the recession, it’s still proving to be pretty tough out there.”

Link:

http://www.stuff.co.nz/business/money/7070430/Record-mortgagee-sales-near-six-a-day

 

And while you are at it, read this totally different view written only a month ago – no wonder people are confused.

 

Housing boom cuts mortgagee sales
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10805657

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