COMMONSENSE MODEL TO PROTECT MORTGAGE HOLDERS AT RISK
The Member for Berowra, Philip Ruddock MP supports the Federal Opposition’s call on the Rudd Labor Government to formalise an enforced mediation process for mortgage holders that are at risk of having their home repossessed.
“Home mortgage holders under the squeeze of rising living costs and unrealistic mortgage repayments deserve more protection,” Mr Ruddock said.
“A good model would be similar to the Farm Debt Mediation Act 1994, which prevents lenders from taking enforcement action against the farm owner until at least 21 days have elapsed after the lender has given written notice to the farmer.
“As there is no formal mediation process in place for those that receive a Statement of Claim from their lender, a model such as this could potentially help people hold onto their most important asset — their home,” Philip Ruddock said.
• Following this model, an owner with a home mortgage, who is facing home repossession, may then elect to have the matter mediated. If the homeowner does not reply within three months to the lender’s notice, and the lender has tried to mediate in good faith, then the hold on proceedings would no longer apply and enforcement would continue.
Formalising a mediation process for those that are facing the prospect of losing their home would give more rights back to homeowners, who often feel powerless in situations where they are overwhelmed with paperwork containing confusing legal jargon.
“A formalised and enforceable mediation process would also put a spotlight onto those lenders that fall into the predatory lender category, as they all too often get away with unsavoury lending practices, resulting in people losing their homes all too easily,” Mr Ruddock said.