HARARE – In a very alarming sign for the Zimbabwean economy, foreclosures have continued to dramatically increase in 2013.
And experts say that most foreclosures were due to toxic mortgages, with Zimbabweans banks auctioning off properties to recover debts.
People were being sucked into mortgages that they could not afford with “teaser rates” or with payments that would dramatically escalate after a few years, and with the intensifying liquidity crunch or cash shortages, the people who had agreed to them could no longer make the payments.
And escalating unemployment has become the major reason for foreclosures.
Millions of Zimbabweans have become unemployed during the economic stagnation and many of them are losing their homes as a result.
Foreclosures have continued to skyrocket at a staggering rate.
According to the latest Government Gazette of October 25, the sheriff’s office is set to auction off properties of individuals and companies owing more than six financial institutions.
Tetrad Investment Bank is set to recover money from the auctioning of a piece of land (stand number) 3585 in Norton Township after it won a High court case against Bramwell Holdings and Linda Chaya.
Kingdom Bank has recovered stand 90A Fort Victoria township (Masvingo), measuring 1428 square metres.
The land will be auctioned off after the bank won a High Court case against Mutema Brothers and two others.
Also, the Government Gazette states that the sheriff’s office auctioned a piece of land measuring 1908 metres in Chadcombe, Harare, after Commercial Bank of Zimbabwe won a High Court case against Grace Jekecha.
The sheriff also auctioned stand number 502 in Dangamvura Township, Mutare, after Old Mutual Life Assurance won a High Court case against Kubudirira Marketing.
Egwen Distributors and three others lost stand number 357 in Highfield Township, Harare, after it lost a High Court case to People’s Own Savings Bank.
Oxford Agrochemicals and four others lost a Mount Pleasant stand in Harare measuring 3 912 square metres, after it lost a case to ZB Bank at the High Court.
The sheriff also auctioned off a piece of land in Bulawayo measuring 597 square metres after NMB bank won a High Court case against one Cornellio Sunduza, Yvonne Sunduza and Agreeable Enterprises.
At a time when President Robert Mugabe’s administration believes that Zimbabwe is “turning the corner”, things just seem to get even worse.
Some areas of the country continue to be complete and total disaster areas when it comes to real estate.
Unemployment has replaced bad loans as the number one cause of foreclosures, experts say.
For those who believe that the economy is supposed to be “improving”, it must seem really odd that foreclosure rates in major cities continue to skyrocket.