In a downturn housing market, LVR may turn out to be exceeding 80% if bank decide to conduct a valuation on existing mortgages. In that case if bank may asks customer to reduce the loan to bring LVR to 80% (or buy LMI) and if consumer is unable to do so, can bank sell the property to mitigate their risk even if the customer is meeting all repayment obligations? Is this correct? If bank continues to hold it increases the risk for them. Right? Owners from perth's mining areas may have experienced this.