This article written by Brokers Online warms of the perfect storm that some have predicted regarding the housing bubble that Australia has experienced in the early 2000’s.
“Digital Finance Analytics (DFA) is claiming a fifth of first home owners risk losing their properties in the next few months.” Its Australian Mortgage Stress Analysis of 26,000 households claims 16% currently fall into the ‘severe mortgage stress’ category, which is defined as falling behind in payments, or receiving threats of foreclosure.”
“Low-to mid-income households were among the hardest hit.”
“The number of suburban homes in this demographic will rise by 4,000 before June 30 2013, according to the report.”
This isn’t good news for those who have been given loans before the GFC and haven’t seen their values for homes appreciate as it did in 2000-2007 (1st half).
I just met a couple who have a nice house but are swimming in debt and there is no good feelings emerging when you have bills to pay, and not being able to pay them, month after month. This is partly because they shouldn’t’ have had a loan in the first place, and also that life happens and situations change.
This situation of high arrears in major areas isn’t good for Mortgage broker’s either, as it states in the article.
“Obviously you don’t get paid trail if a mortgage is in arrears, which is a big problem for brokers,” he said.
So if you are drowning I debt and not sure how to proceed, don’t stick your head in the sand, give me a call and maybe we can work out a plan of action, or put you in contact with someone that may be able to help you out.