Wednesday, May 09, 2012

Ecuador law would forgive debt on defaulted mortgages of first-time buyers - The Washington Post

Ecuador law would forgive debt on defaulted mortgages of first-time buyers - The Washington Post

QUITO, Ecuador — Ecuador’s legislature has passed legislation that would require banks to forgive any outstanding debt on mortgages for first-time home buyers of properties worth up to $146,000 if they default and forfeit a home.


The measure, aimed at discouraging a real estate bubble of the type that has caused so much pain in the United States and Europe, won praise from many Ecuadoreans on Wednesday. The country’s banking industry did not immediately comment.
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That makes Ecuador the leading edge of housing finance reform.

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