Shadow Minister Media Releases
Homeowners Suffering Mortgage Stress Need Urgent Help ( 12/05/2008)
The NSW Labor Government must reverse their decision to oppose Coalition legislation designed to ensure the equity in homeowners’ properties is protected.
The legislation introduced by Nationals MP for Ballina, Don Page, provides that a mortgagee in possession must ensure homes are sold at market price and not just at a price to cover the lender’s interest in the property. This protects the borrowers equity in the home.
“A report in today’s Daily Telegraph says that property values are dropping dramatically as interest rates rise and homeowners are being forced to sell at big losses,” Mr Page said.
“Homeowners currently experiencing mortgage stress would benefit from my legislation becoming law now in the event they are unable to maintain their loan,” he said.
“I condemn the NSW Labor Government’s opposition to this legislation despite having agreed to it several years ago.
“Identical legislation passed through the NSW Lower House with Government support in the past but the legislation did not pass the Legislative Council because the election intervened.
“The Government wants to re-badge my legislation and call it their own.
“Homes are now being sold at a loss across Sydney. It is no longer a phenomenon experienced solely in the so-called ‘Mortgage Belt’.
“My concern is that this is only the beginning of an extremely stressful time for NSW homeowners. If this legislation had been passed by the Labor Government when it was first introduced in Parliament homeowners would be protected now.
“NSW Labor care more about getting the credit for my bill than about the plight of home owners in trouble with their loans,” Mr Page said.
“The temptation for financiers in NSW is to sell assets with a view to ensuring their own debt is covered with little regard to any remaining equity held by the borrower,” he said.
