The weekly recap of mortgage, home loan and housing news in Australia.

The top stories for the week ending 23/09/07:

Houses lost because of too much bad debt
News.com.au
Peter Jean reports that families are losing their homes as mortgagee repossessions rise after over-burdening themselves with debt to pay for goods such as flat screen televisions. As per the article there were 2720 court applications for repossession of properties whose owners defaulted on mortgage repayments in Victoria in the year to June.

Pressure on big spenders
Sunday Mail
An article by Daryl Passmore and Lucy Carne presents an overview of Australia’s obsession with credit and the “buy now-pay later” attitude. Article includes commentary from financial counselors dealing with the issues at ground level.

Cowboy roundup
Herald Sun
The rise of easy money and lenders who turned a blind eye to an applicant’s shortfalls have played their part in the current global crisus sending shivers through the mortgage belt, writes Scott Pape.

Never say never. Vigilance on housing debt essential
The Sydney Morning Herald
Annette Sampson takes a look at lending practices that have effected the woes in the US and how Australia compares. The article takes a look at some of the predatory lending practices being used in Australia and reports that are recommending national regulation of credit products and advice, a line which is almost universally embraced by mainstream mortgage brokers and non-bank lenders.

US crunch may drive mortgage rates higher
The Sydney Morning Herald
Economics Writer Matt Wade takes a look at statements from the Reserve Bank governor, Glenn Stevens, warning that interest rates for many borrowers could keep climbing while the turmoil on money markets caused by the US sub-prime lending meltdown lingered.

Australia ‘miles behind frontline’ of subprime crisis
ABC Online
Journalist Peter Ryan speaks with the chief executive of the Bluestone Mortgage Group, Alistair Jeffrey, about the US sub-prime fallout whilst at a sub-prime conference in the United States.

Fujitsu - JP Morgan Australian Mortgage Industry Report
Fujitsu Consulting
The latest Australian Mortgage Industry Report from Fujitsu Consulting and JP Morgan is available online, along with previous issues. The latest report shows that 70,000 households are now experiencing severe mortgage stress across Australia and they also indicate to possible rises in that number.

Somewhat gloomy recap this week…hopefully something more positive next week!