Anthony Collingwood didn't know how true his words would prove to be when he abused former Blue Chip boss Mark Bryers at the Auckland District Court.

"I hope you feel good putting me out in the street, boy. I've got two kids," he yelled as Bryers arrived to face a raft of charges 18 months ago.

The Collingwoods have become the first Blue Chip victims to lose their house in a mortgagee sale.

"I didn't realise it was going to be fact," he said through tears this week.

Three years on from the investment scheme's collapse he and wife Carolyn are among the faces of the destruction left in its wake.

While Bryers lives in a luxury Sydney apartment and carries on his dubious brand of property investment, the once financially secure West Auckland couple are homeless and staring down the barrel of bankruptcy.

Westpac sold their Massey property last month, and they and their twin 12-year-old daughters have until Wednesday to get out of their family home of seven years.

It is likely to be the first of many Blue Chip-related foreclosures.

Lenders such as Westpac, GE Money and Challenger had been waiting for the outcome of legal action over Blue Chip deals before moving.

Most significant was the case of Whangarei pensioners Bruce and Judy Bartle, who lost in the Supreme Court in December.

The Collingwoods borrowed $150,000 against their house to put a deposit on three Blue Chip apartments. But under the terms of the unusual investment products they were never supposed to settle on the properties.

They and dozens of other similar investors were left high and dry when Blue Chip collapsed in February 2008.

They kept servicing the loan for more than two years until it got too hard, Carolyn said.

"I just couldn't continue paying it, with paying the other part of the mortgage and all our bills, rates and insurances."

She has had to put basics on credit cards and has accepted food parcels.

The pair are in so much debt they expect to be bankrupted.

Carolyn works part-time as a community home help, and Anthony is on a disability benefit as he waits for a hip replacement.

The situation has put unbearable stress on their marriage, and wider family relationships.

Carolyn's family don't understand how she could be "so bloody stupid" and her two adult children are gutted. "[They] were very angry with us because this is like their inheritance."

This week the Collingwoods have been moving the last of their modest possessions out of the Royal Rd home.

To add insult to injury the new owner has been on the property illegally, clearing out the contents of the garage and carport into a skip.

They were once "set up pretty nicely", with practically no mortgage, a downstairs flat rented out and plans to subdivide the section.

After being homeowners for more than 20 years they are temporarily renting a place they can't afford. They hope to go on the Housing New Zealand list.

"We don't want social welfare help but there's no choice," Anthony said.

"Westpac haven't given us any leeway at all. There's no human factor behind it."

Westpac said a mortgagee sale was always a last resort.