A LEGAL centre is fighting to help Wyndham residents at risk of having their homes repossessed, after a survey found an alarming number of its clients were falling behind on mortgage repayments.
The survey, completed by 177 Wyndham Legal Service clients, found 50 per cent faced difficulties meeting mortgage repayments.
Most were ignoring letters from their banks chasing money.
It follows 2011 census data that showed 15.4 per cent of households in the Wyndham area were in ‘mortgage stress’ – defined as spending 30 per cent or more of household income on mortgage repayments or repaying debts.
The average monthly household income in Wyndham was $6170, while the median monthly mortgage repayment was $1800.
Wyndham Legal Service solicitor Juliet Akello said a free clinic at its office in Station Place, Werribee would be a safety net for those at risk of repossession. The service has already helped 10 people since October.
“We have had a good success rate with everyone coming to an agreement with the bank to find realistic long-term solutions to maintain their mortgage repayments,” she said.
“Where clients had failed to seek help, they, along with their families, face homelessness.”
Ms Akello said banks usually had good financial hardship departments, but it was “sometimes easier” in the resident’s mind to do nothing and wait.
Wyndham Vale resident Louise, not her real name, saw the clinic advertised on a pin-up board while waiting in line at Centrelink.
Her marriage had ended and an injury had forced her out of her employment at a nursing home.
Friends were helping her pay for groceries and she was missing her $400 monthly repayments
“That’s when everything started falling apart,” she said.
“I saw the flyer and picked it up . . . I was in real strife and didn’t know what else to do.”
Louise said the legal service helped explain in simple language where she stood and what she needed to do, dampening the fear she would lose her home and helping her reach an agreement with her financial provider.
According to council figures, more than 50 per cent of Wyndham residents are mortgage borrowers. Ms Akello said reasons people fell behind on repayments included relationship breakdowns and becoming unemployed.
Wyndham Legal Service: 9741 0198.
