"It's often very sad. People get themselves into trouble for all sorts of reasons. It can be to do with their work, if they lose their jobs. It can be matrimonial. There's a range of reasons. So it's quite nice to see the fall in numbers. Things are definitely a lot better than they were 18 months ago."
Asked if mortgagee sales represented a chance for bargain hunters to bag a cheap deal, Ms Killgour said banks had an absolute duty of care to get the highest possible price for the owner.
"If there is money left over it obliviously goes back. Obviously debt has to be paid, and once that debt is paid it goes back to owners."
She said dealing with people who were having their home sold from under them could be difficult, with mortgagees under significant emotional stress.
"It's hard when there's family and little children or extended family and elderly [people] living in the family unit."
When more people were losing their homes her agency would have 20 to 30 mortgagee sales on its books at any one time. Now she only has one.
The dramatic fall in foreclosures reflected the buoyant Auckland market.
"If they get into trouble they're able to refinance or likewise sell and get themselves out of the situation they're in. So it's far better for homeowners."
However if prices fell in a market downturn, she expected to see the number of mortgage defaulters rise.
"It's just going up and up. If there is a correction and people have paid at the peak of the market, it could create real problems."
