Icelanders protest having to PAY mortgages

[permabear]

Here’s another link about the story:

http://www.icenews.is/index.php/2010/10/05/shattered-glass-and-injuries-at-iceland-parliament-protests/

[quote]The protesters were protesting various things; but mostly the perceived lack of promised government help to indebted householders.[/quote]

[jstoesz]

[quote]
And while 8,000 protesters seems like a de-minimis number, keep in mind it is 2.7% of the country total population, and would be equivalent to 9.5 million American lining up to throw rotten vegetables at Ben Bernanke[/quote]

[jstoesz]

[quote]
And while 8,000 protesters seems like a de-minimis number, keep in mind it is 2.7% of the country total population, and would be equivalent to 9.5 million American lining up to throw rotten vegetables at Ben Bernanke[/quote]

[jstoesz]

[quote]
And while 8,000 protesters seems like a de-minimis number, keep in mind it is 2.7% of the country total population, and would be equivalent to 9.5 million American lining up to throw rotten vegetables at Ben Bernanke[/quote]

[jstoesz]

[quote]
And while 8,000 protesters seems like a de-minimis number, keep in mind it is 2.7% of the country total population, and would be equivalent to 9.5 million American lining up to throw rotten vegetables at Ben Bernanke[/quote]

[jstoesz]

[quote]
And while 8,000 protesters seems like a de-minimis number, keep in mind it is 2.7% of the country total population, and would be equivalent to 9.5 million American lining up to throw rotten vegetables at Ben Bernanke[/quote]

[Anonymous]

[quote=patb]if i recall correctly the Icelanders borrowed in Marks and Sterling to buy houses, when the currency rates shifted they were screwed.

much as if your mortgage was priced in yen[/quote]
this is what i remember too. they had community chartered banks that gave way to a fractional reserve system. those banks allowed those screwy mortgages. the banks’ practices brought the whole country to its knees. and now the citizens are up in arms.

[Anonymous]

[quote=patb]if i recall correctly the Icelanders borrowed in Marks and Sterling to buy houses, when the currency rates shifted they were screwed.

much as if your mortgage was priced in yen[/quote]
this is what i remember too. they had community chartered banks that gave way to a fractional reserve system. those banks allowed those screwy mortgages. the banks’ practices brought the whole country to its knees. and now the citizens are up in arms.

[Anonymous]

[quote=patb]if i recall correctly the Icelanders borrowed in Marks and Sterling to buy houses, when the currency rates shifted they were screwed.

much as if your mortgage was priced in yen[/quote]
this is what i remember too. they had community chartered banks that gave way to a fractional reserve system. those banks allowed those screwy mortgages. the banks’ practices brought the whole country to its knees. and now the citizens are up in arms.

[Anonymous]

[quote=patb]if i recall correctly the Icelanders borrowed in Marks and Sterling to buy houses, when the currency rates shifted they were screwed.

much as if your mortgage was priced in yen[/quote]
this is what i remember too. they had community chartered banks that gave way to a fractional reserve system. those banks allowed those screwy mortgages. the banks’ practices brought the whole country to its knees. and now the citizens are up in arms.

[Anonymous]

[quote=patb]if i recall correctly the Icelanders borrowed in Marks and Sterling to buy houses, when the currency rates shifted they were screwed.

much as if your mortgage was priced in yen[/quote]
this is what i remember too. they had community chartered banks that gave way to a fractional reserve system. those banks allowed those screwy mortgages. the banks’ practices brought the whole country to its knees. and now the citizens are up in arms.

[UCGal]

I have a friend in Kópavogur, Iceland. She was able to take advantage of this mess to upgrade her family’s housing.

As you may know – housing is outrageously expensive in Iceland.

Rates have gone through the roof – which depressed housing prices but it’s still super expensive. So in order to upgrade she needed to find a better condo, with an assumable fixed rate.

They found a bank owned one – the bank was willing to write off 100% of the 2nd mortgage the previous owners had… and if my friend could come up with $62k (US), they could assume the fixed rate first mortgage. (62k was the principal that was paid by the previous owner.)

Their old condo mortgage payments kept going up (rate increases) even though the value was going down… but they were able to find a buyer to assume that loan and pay them part of their equity. (remember, prices had fallen so they couldn’t get all of the sunk costs back.)

For about 10k US (net) they were able to upgrade from a small 2 br condo with no parking to a very nice 4 br condo with underground parking. And their monthly payment is the same and won’t go up.

They were only able to do it because they had the cash reserves to pay the big chunk, up front, on the new condo while selling their old condo.

I know she feels a lot better having a fixed rate mortgage given the wacky economy there. And with 3 kids – a 2br condo was too small.

[UCGal]

I have a friend in Kópavogur, Iceland. She was able to take advantage of this mess to upgrade her family’s housing.

As you may know – housing is outrageously expensive in Iceland.

Rates have gone through the roof – which depressed housing prices but it’s still super expensive. So in order to upgrade she needed to find a better condo, with an assumable fixed rate.

They found a bank owned one – the bank was willing to write off 100% of the 2nd mortgage the previous owners had… and if my friend could come up with $62k (US), they could assume the fixed rate first mortgage. (62k was the principal that was paid by the previous owner.)

Their old condo mortgage payments kept going up (rate increases) even though the value was going down… but they were able to find a buyer to assume that loan and pay them part of their equity. (remember, prices had fallen so they couldn’t get all of the sunk costs back.)

For about 10k US (net) they were able to upgrade from a small 2 br condo with no parking to a very nice 4 br condo with underground parking. And their monthly payment is the same and won’t go up.

They were only able to do it because they had the cash reserves to pay the big chunk, up front, on the new condo while selling their old condo.

I know she feels a lot better having a fixed rate mortgage given the wacky economy there. And with 3 kids – a 2br condo was too small.

[UCGal]

I have a friend in Kópavogur, Iceland. She was able to take advantage of this mess to upgrade her family’s housing.

As you may know – housing is outrageously expensive in Iceland.

Rates have gone through the roof – which depressed housing prices but it’s still super expensive. So in order to upgrade she needed to find a better condo, with an assumable fixed rate.

They found a bank owned one – the bank was willing to write off 100% of the 2nd mortgage the previous owners had… and if my friend could come up with $62k (US), they could assume the fixed rate first mortgage. (62k was the principal that was paid by the previous owner.)

Their old condo mortgage payments kept going up (rate increases) even though the value was going down… but they were able to find a buyer to assume that loan and pay them part of their equity. (remember, prices had fallen so they couldn’t get all of the sunk costs back.)

For about 10k US (net) they were able to upgrade from a small 2 br condo with no parking to a very nice 4 br condo with underground parking. And their monthly payment is the same and won’t go up.

They were only able to do it because they had the cash reserves to pay the big chunk, up front, on the new condo while selling their old condo.

I know she feels a lot better having a fixed rate mortgage given the wacky economy there. And with 3 kids – a 2br condo was too small.

[UCGal]

I have a friend in Kópavogur, Iceland. She was able to take advantage of this mess to upgrade her family’s housing.

As you may know – housing is outrageously expensive in Iceland.

Rates have gone through the roof – which depressed housing prices but it’s still super expensive. So in order to upgrade she needed to find a better condo, with an assumable fixed rate.

They found a bank owned one – the bank was willing to write off 100% of the 2nd mortgage the previous owners had… and if my friend could come up with $62k (US), they could assume the fixed rate first mortgage. (62k was the principal that was paid by the previous owner.)

Their old condo mortgage payments kept going up (rate increases) even though the value was going down… but they were able to find a buyer to assume that loan and pay them part of their equity. (remember, prices had fallen so they couldn’t get all of the sunk costs back.)

For about 10k US (net) they were able to upgrade from a small 2 br condo with no parking to a very nice 4 br condo with underground parking. And their monthly payment is the same and won’t go up.

They were only able to do it because they had the cash reserves to pay the big chunk, up front, on the new condo while selling their old condo.

I know she feels a lot better having a fixed rate mortgage given the wacky economy there. And with 3 kids – a 2br condo was too small.

[Author]

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