It is those who have invested in multiple properties who are finding it hardest and they are being urged to speak to their lender rather than suffer in silence and end up losing everything.
The latest figures from Terralink International, showed 247 registered mortgagee sales in May, compared to 88 for the same time last year. Terralink managing director Mike Donald said the numbers were a sign that stress in the property market was not letting up.
'The numbers of mortgagee sales in May is on a par with the previous month but the number is still at a level unseen in the 15 years we've been recording these figures,' he explained.
'All indications are that increasing numbers of New Zealanders will lose their properties via mortgagee sales. Early predictions for mortgagee sales in June show the level will reach a new record,' he warned.
Donald said those being hardest hit by mortgagee sales were individuals and corporate property investors. Some 81% of them were for individuals or companies who owned more than one property.
'Many New Zealanders took advantage of the property boom by buying a number of properties, but now that times are tough servicing multiple mortgages is becoming impossible for increasing numbers of New Zealanders,' he added.
James Young of Auckland University real estate research said people paying a high proportion of their income in mortgage payments, usually first time buyers, were most vulnerable to mortgagee sales, as were those who had lost their job or had their hours cut.
Yet there are options for homeowners to stay in their properties depending on how much work they wanted to put into it and providing they ask for help.
'If you go to ground, you give the bank no choice but to throw the book at you. Once a bank started issuing Property Law Act notices, it generally didn't back-pedal,' said Mortgage broker Steve McGowan.
Bruce Thompson of Kiwibank said struggling homeowners had to confront their financial situation and work with the bank. 'The idea of someone selling in a depressed market and walking away still owing money is the worst possible outcome. The best possible outcome is that they can get to a position where they can manage their debt and get through until the market or their personal circumstances improve,' he explained.
