Hungary has found an answer to its mortgage problem: a purpose-built "debtor village" for Hungarian families who have defaulted on their soaring loans and lost their homes.
Before the financial crisis in 2008, many Hungarians took out cheap mortgages denominated in foreign currencies such as the Swiss franc, euros and yen. However, as the crisis gripped Europe, the value of Hungary's currency, the forint, tumbled, making the cost of the foreign-denominated mortgage prohibitively high for many families. As many as one in five households could not keep up with their monthly mortgage payments, according to the BBC.
(Read more: Hungary attacks Roubini over currency 'advice')
In response to this, the Hungarian government stepped in to create a "debtor village" to house these families. The village, which provides affordable accommodation, is able to house around 80 families.