Receivers and methods are provided for polarization mode dispersion compensation in multi-level coded-modulation schemes using a BLAST algorithm and iterative polarization cancellation. A receiver includes a vertical Bell Laboratories Layered Space-Time Architecture (V-BLAST) orthogonal frequency division multiplexing (OFDM) detector configured to receive input sequences and partially cancel polarization interference with respect to the input sequences to output symbol estimates for the input sequences. The receiver further includes one or more low-density parity-check (LDPC) decoders coupled to the V-BLAST OFDM detector configured to receive channel bit reliabilities and output code words. The channel bit reliabilities are indirectly calculated from the symbol estimates. The one or more LDPC decoders iteratively provide extrinsic soft information feedback to the V-BLAST OFDM detector to compensate for the polarization interference.