The tragic reality of home repossession has been highlighted by a Melbourne businessman, Derek Balogh, who refused to give up his house despite a court order and wound up in one of Victoria's maximum security prisons. The day before his release his mother died of cancer.
Legal experts have warned more home loan defaulters who refuse court orders to give up their homes will be found guilty of contempt of court and jailed.
Mr Balogh, who is a mortgage adviser, said he had been treated as a criminal "when I was only trying to save my house".
Mr Balogh admitted he failed to respond to the Commonwealth Bank's legal action and court orders.
But he said he did not deserve to be jailed in Port Phillip Prison last month.
Mr Balogh admits he should have handled the situation differently, and now has an approximate debt of $340,000 with interest of about $100 a day with his Cairnlea house due to be auctioned in June.
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