During 2006, there were 5,368 cases lodged in the Supreme Court’s Possession List – 10 per cent more than the previous year. This filing rate was well down on the dramatic 59 per cent increase in 2005 compared with 2004.
The Possession List relates to lenders taking legal action against borrowers who default on mortgages that are secured by property.
Typically, in over 95 per cent of these cases, the borrowers do not contest the case, and the lender can obtain a judgment by default. The Supreme Court publishes information separately for contested cases and uncontested cases. It does not publish statistical information on the number of default judgments issued.
Even when a judgment for possession of the property is obtained or is being obtained, the lender and borrower may resolve their issues by methods such as:
re-negotiating loans
re-financing loans
voluntary sale of the property.
A judgment for possession does not entitle the lender to evict the borrower.
The properties involved can be:
investment properties
commercial premises
unimproved land
residential properties.
Lenders can include any individual or organisation that provides finance against a mortgaged property.
The Supreme Court does not hold statistical information on the types of property involved in its cases, nor on the types of lenders that commence action.
Background:
If a judgment for possession of land has been given, a writ of possession may also be sought. Lenders who obtain a judgment for possession of land do not always choose to also obtain a writ of possession.
If a writ of possession is obtained, the lender chooses whether the writ should be executed or not executed.
The Office of the New South Wales Sheriff handles the execution of a writ.
