06 August 2015

The defaulting borrowers, pig farmers, obtained a short stay of eviction despite the fact that consent orders were made in April. The lenders had given the borrowers considerable time to repay (two years) without enforcing their security and the debt now outweighed the value of the property substantially with interest accruing at a significant daily rate. This was done on the basis that the family had a longstanding relationship with the land, the default arose from financial incompetence rather than dishonesty and there was some prospect of a refinance, even though there had been talk of a refinance for many months. The court cautioned:

This is the absolute last stage of a long-running problem that must come to an end.

Click here to read the full judgment.

Matthew Bransgrove, Partner

Matthew Bransgrove has practised exclusively in the field of mortgage law and mortgage related litigation since 1998. He is author of Avoiding Mortgage Fraud in Australia (2015) Lexis Nexis. He is co-author of The Essential Guide to Mortgage Law in NSW (2008) Lexis Nexis and its successor The Essential Guide to Mortgage Law in Australia (2013) Lexis Nexis.

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