Property Club says its 20,000 members cannot afford their mortgage repayments.
""We're advising our members to get themselves into conflict with their bank, to say they can't afford principal and interest repayments without ending up in financial stress."
Property Bull Nathan Birch is also being torched after financial problems contributed to him defaulting on a mortgage and getting sued by the lender.
"Court documents obtained by the Financial Review show that by June 23 Mr Birch's company HLG One Holdings Pty Ltd had failed to pay amounts owing on a $535,000, 30-year interest-only mortgage for 9 Victor Avenue, Paradise Point, which has three two-bedroom rental units on one title.
HLG One Holdings, of which Mr Birch is the sole shareholder and guarantor over the loan, was given 31 days to remedy the situation or be in default.
When HLG One Holdings had not done so, Permanent Mortgages, who were charging a variable interest rate of 6.94 per cent plus late payment fees at an additional rate of interest of 5 per cent a year, sued HLG One Holdings and Mr Birch claiming repossession of the property together with $548,367 and interest accrued on the amount at a rate of 11.94 per cent a year from August.
Extraordinarily, Mr Birch did not file a notice to dispute the claim within the stipulated 28 days – an action which meant a judgement could be made against him for the amounts owing plus costs."
The loser claims to have a networth in excess of $30m, and pull in a $500k/year income after all outgoings but was unable to service a piddly mortgage.
