Iceland new way to deal with foreclosure

IceNews – Daily News

Demolished house in protest at repossession

By Alex on Jun 18, 2009 in General, Iceland, MBL

Frjalsi Investment Bank won a house in a forced auction last November in the Reykjavik suburb of Alftanes. However, the bank still has not taken possession of the house keys and the former owner unilaterally decided to demolish the house yesterday.

According to Stod 2 News, the former owner recently received a final eviction notice and felt he had nothing to lose – it made no difference to him if he went bankrupt owing 60 million kronur or 120 million. With this very public act of disobedience he apparently hoped to draw attention to the terrible situation many in financial difficulties find themselves in these days.

Bjarni S. Einarsson, a planning and building representative of the local government, told mbl.is that a licence is needed to demolish a house and that none had been sought in this instance. He apparently noticed the demolition when out walking in the area. “I saw what was going on and called the police and house owners,” Einarsson said. “I’m totally speechless,” he added.

Frjalsi representatives say the house is almost totally destroyed, with just the garage remaining intact. A professional demolition company has already been engaged to clear the land and make it safe again.