Foreclosures up thirty per cent

Eight hundred and eighty Victorian households faced foreclosure in the first three months of the year, according to Supreme Court figures, a rise of 30 per cent on the same period last year.

The limit on the amount of debt a person can claim assistance with under hardship provisions of consumer lending laws will rise from $312,000 to $500,000. According to the Reserve Bank, non-performing loans have climbed to 0.5 per cent, up from 0.3 per cent at the end of 2007.

Nicole Rich, policy director for the Consumer Action Law Centre said repossessions are expected to rise as unemployment goes up. More than 3,000 repossession writs had been lodged in the Supreme Court since April 2008.

Source: The Age

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