Spike in forced house sales

Mortgagee sales have spiked in the first six months of this year as banks foreclose on struggling Northland property owners' homes and investment properties.

Quarterly figures released by information company Terralink show 69 forced sales occurred in Northland between April and June, a 35 per cent jump compared to the previous threemonth period (51).

In the first six months of the year, 120 mortgagee sales were recorded in Northland - more than twice the number for the same period last year.

Ray White Allens director John Monteith said homeowners who were struggling to keep up with mortgage payments should contact their bank immediately.

''It's an incredibly painful process [for owners] . . . and it may be more beneficial to sell it sooner rather than later or before it gets to mortgagee sale.''

More than 20 Northland properties were listed for mortgagee sale yesterday on Trade Me.

The Terralink figures are derived from foreclosure registration data supplied by financial institutions. However commentators warned yesterday they may include sales from prior periods. Mr Monteith said a recent property case in Hikurangi demonstrated that homeowners still had options even when foreclosure seemed imminent.

"When we got involved and when we got our mortgage broker involved, we ended up helping the lady keep her house."

Nationally, forced property sales are taking place at rates similar to those last seen during the peak of the recession in 2009. In the first half of this year, 1129 mortgagee sales occurred.

Terralink managing director Mike Donald said the number of foreclosures was only expected to rise.