Iceland forgives mortgage debt of its population

Published on Apr 12, 2012 by telesurenglish

The government of Iceland has forgiven the mortgage debt for much of its population. This nation chose a very different way of stopping the crisis from the rest of European countries. It decided to hear the requests of the population and to put politicians and bankers on the bench of the accused three years after their financial excesses would sank one of the most prosperous economies in 2008. teleSUR

Iceland forgives mortgage debt of its population – YouTube.

Fannie, Freddie to Forgive Mortgage Debt?

By Richard Davies
Apr 11, 2012 8:01am

Another big push to help troubled homeowners may be in the works. The acting director of the Federal Housing Finance Agency has softened his stand against allowing Fannie Mae and Freddie Mac to reduce mortgage debt for struggling borrowers. Edward DeMarco says his agency is considering whether this change would lower losses by Fannie and Freddie and help stabilize home prices. Taxpayers have already spent $170 billion to bail out the mortgage giants. Principal forgiveness could be offered to 700,000 borrowers at risk of foreclosure. In a CSPAN interview last week, President Obama’s Housing Secretary Shaun Donovan said he believes there is a “compelling” case for principal forgiveness.

Is it merely a correction or a true change of direction? Stocks have been in their biggest losing slide of the year. But the worst might be over.

European stock averages rose this morning. US stock futures were up after five straight days of losses. Both the Dow Jones Index and S&P 500 lost more than 4 percent in value over the past week. The real trigger was last Friday’s relatively weak US jobs report. Then came fresh concern about the weak state of Spain’s economy and debt problems.

Italy’s borrowing costs on short term debt more than doubled in today’s bond auctions. The interest rate demanded by investors for 1 year bonds rose to 2.84 percent from 1.4 percent last month.

Earnings season began with Alcoa reporting a sharp drop in profits. But its first-quarter report still came in stronger than analysts expected. Alcoa sales rose with a rise in demand from car makers, commercial transportation and aerospace companies.

Big oil benefits from high crude prices. Chevron says the price bump will help push first-quarter profits higher than the prior quarter. Chevron also benefited from higher refining profit margins, lower operating costs, and gains from selling assets.

When Brian Dunn quit abruptly as CEO of Best Buy it appeared to be related to the firm’s crumbling business model as a big-box retailer. Now a statement says Dunn resigned as the company looks into his personal conduct. It’s not clear what this involves.

Richard Davies Business Correspondent ABC NEWS Radio

Fannie, Freddie to Forgive Mortgage Debt? – ABC News.

Homeowner Asked To Pay $0.00 In Order To Avoid Foreclosure

The Huffington Post
Harry Bradford
First Posted: 6/8/11 10:19 AM ET
Updated: 8/8/11 06:12 AM ET

Of all the foreclosure warnings issued during the housing crisis, perhaps oddest is the one demanding no money at all.

Earlier this year, in Northampton, Massachusetts, a man, referred to in reports only as Mark, received a notice demanding that he pay $0.00 to his mortgage lender, Bank of America, or his home would be seized, according to local television network News 22 WWLP. The notice surprised Mark, who had consistently made his mortgage payments, yet it was indeed no joke, as Mark found his credit score had been downgraded.

Despite the gravity of the situation, Mark understood the absurdity of it all.

“It says, you owe us zero dollars, zero cents. I’m going to write a check to them for zero dollars and have it clear? I couldn’t help but laugh,” he told News 22 WWLP, who, in turn, informed Bank of America of the story after Mark himself had struggled to get in contact with the bank. Turns out, an electronic filing error caused Mark’s payments to end up in the wrong place.

Bank of America made right after the mix-up, making sure Mark’s credit score was restored and, of course, allowing him to keep his home. For his trouble, he also got a little extra in the form $150 and a gift certificate.

The story is only the latest in a string of bizarre foreclosure incidents.

In Jacksonville, Florida, home flipper Perry Laspina ended up not having to pay the remainder of his mortgage on an investment property first purchased in 2006, AOL Real Estate reported in April.

After the value of his investment plunged, the story goes, Laspina found no buyers or renters and so simply stopped making payments. His lender, Wells Fargo, was apparently not at odds with the idea, and the loan was written off, the house subsequently given to Laspina.

Others have found success by taking more direct action against banks. Instead of being foreclosed upon, one couple in Naples, Florida actually foreclosed on Bank of America. After the bank failed to compensate Warren and Maureen Nyergers for legal fees leftover from a wrongful foreclosure lawsuit, the couple, with the help of their lawyer and two sheriff’s deputies, began legally seizing assets from the bank’s branch office.

Then of course, there’s the Bank of America that foreclosed on itself in Charlotte, North Carolina. In that case, Bank of America has filed a foreclosure lawsuit against the owner of a building housing one of the bank’s own branches.

Watch the News 22 WWLP news segment here.

via Homeowner Asked To Pay $0.00 In Order To Avoid Foreclosure (VIDEO).

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