STRUGGLING homeowners in Sydney's west are having their properties repossessed in record numbers as rich Harbourside postcodes enjoy surging real estate prices.
The cruel reality of Sydney's two-tier economy is revealed in detail in Supreme Court documents identifying the location of thousands of repossessions by banks and financial institutions over the past 15 months.
The top suburbs where homes have been snatched are all in Sydney's economically embattled suburbs where property prices are continuing to slide.
Bankstown had the highest number of repossessions in NSW with 73 properties.
The suburb with the next highest number of repossessions was Merrylands (63), then Fairfield (53), Auburn (54), Guildford (50), Blacktown (48) Granville (43), Prestons (41) and Greystanes (40).
The Supreme Court figures, obtained under Freedom of Information, break down by suburb and town the Writs of Possession Orders by the Sheriff's Office.
A bank or financial institution must obtain a Writ of Possession from the Supreme Court before selling a property to cover their losses.
The figures include all homes and investment properties plus commercial property.
In 2006, 5363 Writs of Possession were issued – a record that is up 10 per cent on the 4873 the year before. In 2004, there were 3061.
The high numbers of repossessions in Sydney's west and southwest compare to just two in Mosman and three in Vaucluse over the same period.
The repossessions can be revealed as the latest Sydney real estate market analysis shows home prices in Sydney's southwest went backwards 5.7 per cent in the 12 months to March 30.
In the Canterbury-Bankstown area they tumbled 4.9 per cent and in Sydney's west prices barely moved, rising just 0.6 per cent.
But – in clear evidence of two very different Sydneys emerging – Australian Property Monitors found market conditions on the up in city's eastern half.
In the lower North Shore prices surged by 9.2 per cent over the past year, growth not seen since the boom period of the early 2000s.
The Australian Property Monitors report also show the the Inner West to be bouyant with 6.1 per cent growth, City and east up 3.4 per cent and the Northern Beaches up 7.1 per cent.
Investigations by The Daily Telegraph show several mortgagee properties are on the market in Bankstown at this moment – all bargains.
Among them, a two-bedroom unit at Meredith St was purchased in June 2003 for $320,000. Its expected to fetch just $220,000 at auction.
One person whose home has been repossessed is Turkish migrant Ali Ozcan, 41, who purchased a modest fibro home at Granville for $365,000 in February last year.
The home is back on the market as a mortgagee sale with predictions of a selling price of $330,000.
After a couple of repayments he was struck down by a serious bout of depression, landing him in Westmead Hospital for three months. Coupled with this, his marriage broke down.
On February 21 this year, he received a legal letter from Henry Davis Yorke, acting for Westpac, notifying him the back was commencing Writ of Possession proceedings.
"It's a very good house. If I get my house back then my wife will move back," Mr Ozcan said.
Selling agent Moustafa Dalik still hopes Mr Ozcan can refinance with another lender to rescue his home.
Elders Bankstown principal Joseph Mouwad, who estimated he has handled 40 mortgagee sales in the past year, said many of the repossessions were units bought for investment.
"There was a big push for people to invest making use of negative gearing when the boom was in full swing," he said.
Westpac spokesman David Lording said his bank managed mortgage defaulters according to strict guidelines set down by the Banking Ombudsman and the Uniform Credit Code.
"You certainly wouldn't lose your house if you miss a repayment. It's a process that takes many months," he said.
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