NSW Sheriff's Office data, released last month, revealed that more than 300 homes were threatened last year because their owners failed to keep up with mortgage payments, in the wake of rising interest rates and living costs.

Merewether was the worst affected suburb, followed by Cessnock, Warners Bay, Kurri Kurri, Edgeworth, Lemon Tree Passage and Bonnells Bay.

Industry experts predict similar numbers into the next quarter, as Hunter residents prepare to battle through a global financial crisis and feared job losses.

The city's strained charity organisations would struggle to cope with increased welfare needs, Wesley Newcastle City Mission homeless co-ordinator Tony Scully said.

About 50 Hunter residents sought help daily from the mission for emergency accommodation, food vouchers and bill assistance.

A large number of those clients came just one step away from living on the streets and were forced into unsuitable accommodation after their homes were repossessed, Mr Scully said.

"Four months ago, 20 people a day would seek help," he said.

"Today, we have no choice but to turn some away."

Stories of families living in the dark because of unpaid electric bills were not uncommon, he said.

"But there is light at the end of the tunnel, it's just the tunnel seems pretty long at the moment," Mr Scully said.

Newcastle agent and Real Estate Institute of NSW vice-president Wayne Stewart said repossession sales had risen in the Hunter by "about 400 per cent".

"More owners are being forced to sell or the banks are doing it for them," Mr Stewart said.

Mr Stewart believed little would change for six months or more.

Despite the financial losses, it was the social issues behind a sale that could devastate a family, he said.

"When a family loses a house, it can be replaced.

"But when a family is torn apart because of financial stresses, that's devastating."

Mr Stewart said communication between borrower and lender was essential and could save a home from repossession.