Denmark races to prevent foreclosures
Representatives from Denmark's mortgage industry are meeting with the government today in the hope of easing repayment terms on interest-only loans that threaten to unleash a wave of foreclosures this year.
The Association of Danish Mortgage Banks and the Mortgage Bankers' Federation are due to start talks with Business Minister Annette Vilhelmsen to decide how to treat borrowers who won't be able to afford the interest-only loans they took out a decade ago once amortization requirements kick in this year.
Borrowers are also struggling as a deepening property slump drives house prices down to 2005 levels. "Eighty percent of homeowners under 35 years of age are under water.