Nearly one-quarter of Guangzhou homebuyers face lawsuits（诉讼） filed by banks for not paying their mortgages（抵押） for more than three consecutive months.
A law firm helping homebuyers with mortgage application said the number increased over the past two years and would further soar with more automobile buyers joining the ranks. Many—most of whom were young people—couldn’t pay because of unemployment, divorce, accidents and illnesses. Tianhe District People’s Court said it has received an increasing number of such cases each month and expected they would continue to grow as more people bought into the concept of buying on credit.
A lawyer, advised homebuyers to turn over the property to the banks for auction, but he warned that in most cases the money from sales would not be enough to cover the debts, much less leave them in the black. Experts advised people not to buy home on credit if the monthly payment exceeded half of their monthly salary.
