What should be noted here is that the majority of mortgagee sales are by people with only one asset – their home. The lesson to derive from that is “diversification”. Prudent property owners do not rely in one asset and one asset only. They have a spread of assets and extra properties outside the family home might have saved many heart aches.
Losing an investment is bad enough but losing you home is a tragedy . Have you got other assets such as another one or two investment properties ?
If not then now is the time to get going – very carefully. Get good independent advice and don’t fall for the loud mouthed hucksters who make it sound so easy.
More homeowners losing homes
High numbers of “mum and dad” homeowners are losing family homes to mortgagee sales and the numbers are only getting worse.
Terralink International’s latest figures show there were 2265 mortgagee sales during 2011.
This was below the record of 3024 in 2009 and 2434 in 2010, but numbers began to rise during the second half of 2011 and have remained high since.
The figures also paint a grim picture for Kiwis who own just one property – their own home.
Terralink managing director Mike Donald said: “Looking behind the numbers, we see the proportion of individuals with a single property facing mortgagee sales increased in
2011 … to 22 per cent [of mortgagee sales].”