Mortgagee in possession legislation opposed

April 10, 2008

The NSW Labor Government abandoned thousands of families who are struggling to pay their mortgages today when they opposed Coalition legislation designed to ensure the equity in their houses is protected, Member for Ballina Don Page said.

The legislation introduced by Mr 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 borrower’s equity in the home. Last week the Reserve Bank said there are 40,000 home owners in NSW who are 30 days or more behind in their payments and 15,000 of those are 90 days or more behind,” Mr Page said.

“These people would benefit from my legislation becoming law now in the event they are unable to maintain their loan.

“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.

“These delays will see thousands of homeowners adversely affected.”

“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 his legislation would impose a higher duty of care on the mortgagee in possession (financier) to ensure the property is sold for not less than its market value.

“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.

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