MORE Victorians are losing their homes as unemployment rises, with court figures revealing a 30 per cent rise in claims lodged in the first three months of 2009 compared with the same period last year.

As the Federal Government expands its mortgage hardship relief scheme, Supreme Court figures have shown at least 880 households have so far faced foreclosures this year, compared with 677 by the end of March last year.

The figures also show the court had 298 writs lodged for repossessions in the month of March alone, up 46 per cent compared with the month of March last year.

The figures come as the Federal Government announced new provisions to help those struggling with a mortgage.

Until now, a person experiencing financial hardship could seek relief from their financial institution for debts up to $312,000. Under the consumer credit law overhaul, that limit will be increased to $500,000.

The changes will also include responsible lending provisions designed to force institutions to make sure borrowers can repay.

According to Reserve Bank figures, non-performing loans or arrears rates have climbed to 0.5 per cent, up from 0.3 per cent at the end of 2007. RBA figures also show that banks' bad debts known as "impaired assets" rose from 0.19 per cent of all assets at the end of 2007 to 0.74 per cent at the end of last year, the highest amount in about a decade.

Nicole Rich, policy director for the Consumer Action Law Centre, said that although the hardship variations would offer temporary relief for people who lost their jobs and were struggling with their mortgage repayments, many consumers would still be left vulnerable to loans they could not afford.

She said the increase in repossession actions was concerning. They showed that from April 2008 until the end of March this year, more than 3000 repossession writs had been lodged in the Supreme Court.

"What really concerns me about the figures is that they are really going up a lot and we haven't even seen the worst of it in terms of unemployment," Ms Rich said.

She said demand for financial advice had risen as people struggled with debt.

Melbourne University professor Ian Ramsay, who wrote a recent study showing that bankruptcy was becoming more widespread and claiming wealthier people, said that more homes would be lost as more Australians became unemployed.

the buck stops with the boss.

rudds in charge, howard and the libs dealt with it very well, they are in opposition !!!!!!!!

Look at how rudd is going to change the world by signing kyoto, a computer for every school kids, broadband to every house, ........
on and on and on.

he has failed at almost every false promise, avoids the media's questions , now those who voted for him are being thrown out of their homes.
And the ALPers say "its not ruddys fault."
You all read from his script also ??

skippy - no I don't blame rudd for the recession.
I blame the leftards that bought what they could not afford.

costello said that to negate some of rudds big-noting populist whims.
it's a bad policy for aussie with no benefit for the world.
As howard said, he won't do it as it won't help aussie.
It has not helped any country who has signed it.

yes, I know what infrastructure is.
putting in cable across aussie to enable people to see clips faster is not infrastructure.
it will be obselete before it is up.
it's a populist whim at our expense.

rudd runs the media well, very few articles against him. the polls are very selective.

NZ is even more leftard than aussie.
thats quite a gong really -  "old fashioned rightard fascist "
Greatly appreciated, never knew you cared so much.

Ok if I use it as a singature ?

They should be selective about the handouts because they have been given out to anyone and everyone even those people who don't live in Australia.

I thought I'd take advantage of that insulation thing on offer even though I had a roof blanket put in last year and the girl was out this morning.  You have to pay up front and then apply for the rebate and the price has doubled since last year.

She was telling me that property investors with up to 20 homes have been getting their investment houses done.  They get a $1300 rebate for investment property whereas a home owner gets $1600 - but the costs of getting it done exceeds $1600.  My quote was $2100 and it's not a big house - last year, it was under $1,000.

It's just pushed prices up outrageously and the representative confirmed that as well.  Those with the cash to pay up front will get it done quickly and those who haven't will probably not get a chance because it cuts off at $2.5 billion.

skippy - how do I attach a signature ??
"Traditonal rightard neocon" sounds good to me


Any recession is a normally occurring event. Same as a cold.
those that borrowed money caused it.
Anyone force you to buy a plasma TV or 4X4 SUV ???