Archive | Mortgage seizures

Eminent Domain to Lower Mortgages: A Silly Idea That Won’t Go Away

Last year we read about the plan of the City of Richmond California to condemn underwater mortgages to squeeze them from financial institutions and refinance them for the homeowner. Financial institutions sued and the plan was aborted. But now we read that the City of San Francisco has an idea to partner with nearby Richmond on the same program. Supervisor John Alvos was quoted in the San Francisco Examiner as saying, “The issue of distressed mortgages is real in San Francisco, data showed that there are hundreds of homes at… read more

Posted in Challenging condemnation, Condemnation Procedures, Eminent Domain Abuse, Mortgage seizures
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New York City to the Rescue- Council Members Seek to Use Eminent Domain to Condemn Underwater Mortgages

At a press conference on the steps of City Hall, City Council members and housing advocacy groups called on the Mayor to help homeowners who are at risk of foreclosure. Such help would come in the form of using eminent domain to “buy back mortgages where homeowners owe more than their houses are worth.” According to a CBS report on June 25, 2014, “under the proposed plan, City government would purchase the mortgages from banks and refinance them to match the home’s value to prevent foreclosure.” According to the report,… read more

Posted in Continuing Legal Education, Eminent Domain Abuse, Future of the law, Mortgage seizures, New York, Uncategorized
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Mortgages- We Don’t Care About No Stinking Contracts

I once wrote that there is a legal aphorism in criminal law that a good prosecutor could indict a ham sandwich. If this is so, in an eminent domain proceeding, an average condemnor could condemn a kasha knish. The public purpose which is supposed to be a required element by our Fifth Amendment really doesn’t apply. See Kelo v. City of New London, 545 U.S.469 (2005). So it is hardly surprising that some governmental ninnies would think that in order to help its underwriter homeowner citizens, it would condemn their… read more

Posted in Eminent Domain, Eminent Domain Abuse, Future of the law, Legislation, Mortgage seizures
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The Government’s Power to Seize Your… Mortgage?

Many of you have probably been following the eminent domain mortgage seizure program proposed in San Bernardino County recently. If not, read more here. Mortgage Resolution Partners has proposed that the City use eminent domain to seize underwater mortgages. According to the San Berndardino Sun, “the loans would then be modified to current market value so people could afford their monthly mortgage payments and establish equity. The loans would then be sold to hedge funds, pension funds or other investors, with the proceeds being used to pay off outside financiers,… read more

Posted in Eminent Domain, Future of the law, Loan crisis, Mortgage seizures
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