Homeowners Rights - Is Fighting With The Bank a Losing Battle?

As a homeowner, there are few things more heartbreaking than falling into financial hardship and having a bank attempt to take possession of your house.

The decision to fight those legal proceedings is a natural reaction — especially given the irreplaceable memories homes contain — but it is a choice that shouldn’t be made lightly.

Failing to properly understand your legal rights and obligations could see you not only lose your home, but also be left paying the bank’s legal costs.

In a recent case, Bendigo and Adelaide Bank applied to the NSW Supreme Court to take possession of the Marrickville home of an elderly Greek couple.

The owners, who had little education and poor English, were aged in their 70s when the bank approved them for a $1.2 million, 25-year loan.

The bank had accepted their estimate of the property’s value without carrying out a formal valuation.

Initially the court found with the owners. The judge found the contract for the loan was unfair, setting aside the contract and only requiring the borrowers to repay a part of the loan.

The bank challenged the decision, with the Court of Appeal overturning the initial case.

It was found the couple had failed to provide adequate evidence about the true value of the property when the loan was entered into.

The couple, now aged 80, were ordered to repay the loan, outstanding interest, and the bank’s legal costs.

There were steps that could have been taken to ensure sufficient evidence was tendered, such as obtaining a historical valuation, however the failure to take these steps contributed to a very unfortunate outcome.

Fighting a bank’s attempt to take possession of your home can add cost and stress to an already tough situation.

It is essential that decision is based on timely, strategic legal advice, which identifies the grounds for opposing an order for possession and the evidence required.