During 2005 there were 4,873 cases lodged in the Supreme Court’s Possession List - 59 per cent more than were lodged during 2004. The filing rate during the first half of 2006 showed a further 9% increase.
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 a judgment is obtained by default. A judgment for possession does not entitle the lender to evict the borrower*.
Even when a judgment for possession of property is obtained, the lender and borrower may resolve their issues by methods such as re-negotiating loans, re-financing loans or voluntary sale of the property.
The properties involved can be investment properties, commercial premises or unimproved land, as well as residential properties.
Lenders can include any individual or organisation that provides finance against a mortgaged property.
The Supreme Court does not have statistical information on the types of property involved in its cases, nor on the types of lenders that commence actions.
2 August 2006
*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 execution of writs is handled by the Office of the New South Wales Sheriff.
