Ecuador law would forgive debt on defaulted mortgages of first-time buyers
Ecuador law would forgive debt on defaulted mortgages of first-time buyers
By Associated Press, Updated: Wednesday, May 9, 1:33 PM
QUITO, Ecuador — Ecuador’s legislature has passed a law that would oblige banks to forgive any outstanding debt on mortgages to first-time home buyers of properties worth up to $146,000 if they default and forfeit the home.
The law would also apply to loans by banks to first-time purchasers of automobiles that cost up to $29,200.
President Rafael Correa praised the law after it passed 68-21 on Tuesday evening. He did not say whether he would sign it or possibly seek amendments.
The bill’s sponsor says that if Spain had passed a similar law a decade ago it could have avoided the housing bubble that has caused so many to lose homes.
More:
http://www.washingtonpost.com/world/the_americas/ecuador-law-would-forgive-debt-on-defaulted-mortgages-of-first-time-buyers/2012/05/09/gIQAztlTDU_story.html
