Bernard Hickey: Mortgage pain on the rise

There is one sure way to capture the mood of the real estate market and economy right now.

Go to Trade Me or realestate.co.nz and search for properties with the word mortgagee.

You'll get a quick precis of what type of property owners are in trouble and how fast the new language of real estate is changing.

"These owners are serious about selling," says the listing for the mortgagee sale of an Auckland apartment. "Don't dilly dally on this one, the owners want it gone."

Apartments, townhouses, cheap rental properties, half-developed investment properties, sections, coastal property and resort property dominate in these mortgagee listings.

So far, mortgagee sales have been limited to stretched developers, maxed-out amateur rental property investors, over-committed renovators and coastal and resort property speculators. The lenders forcing these sales have tended to be finance companies, receivers for troubled finance companies and some second-tier banks and building societies.

Regular mums and dads living in their own homes are making their payments and when they aren't, banks are working with them on delayed payment schedules, payment holidays and even debt restructures.

To read the full NZ Herald article click here

Posted: 24 Nov 2008

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