Black People : Can Cities Seize Mortgages Under Eminenet Domain?

Discussion in 'Black People Open Forum' started by Kemetstry, Jul 7, 2012.

  1. Kemetstry

    Kemetstry going above and beyond PREMIUM MEMBER

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    Can your city seize your mortgage?
    3 California governments aim to invoke eminent domain to fight blight — and help restructure borrowers' underwater mortgages.
    A handful of local officials in California who say the housing bust is a public blight on their cities may invoke their eminent-domain powers to restructure mortgages as a way to help some borrowers who owe more than their home is worth. (Bing: What is eminent domain?)
    Investors holding the mortgages predict the move will backfire by driving up borrowing costs and further depressing property values.
    "I don't see how you could find it anything other than appalling," said Scott Simon, a managing director at Pacific Investment Management Co., a unit of Allianz SE.
    How it works
    Eminent domain allows a government to use force to acquire property that is reused in a way that is considered good for the public — new housing, roads, shopping centers and the like. Property owners are entitled to compensation, which a court usually determines.
    Instead of tearing down property, California's San Bernardino County and two of its largest cities, Ontario and Fontana, want to put eminent domain to an unorthodox use to keep people in their homes.
    The municipalities, about 45 minutes east of Los Angeles, would acquire underwater mortgages from investors and cut the loan principal to match the current property value. Then they would resell the reduced mortgages to new investors.


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  2. Kemetstry

    Kemetstry going above and beyond PREMIUM MEMBER

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    bot





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  3. Keita Kenyatta

    Keita Kenyatta going above and beyond PREMIUM MEMBER

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    Obviously they can use it, it's been done all over this country whenever the government or state decided that they needed a certain area to do what they want to do.
     
  4. Kemetstry

    Kemetstry going above and beyond PREMIUM MEMBER

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    I think the article is saying that this is the 1st time it has been used in this fashion





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  5. Keita Kenyatta

    Keita Kenyatta going above and beyond PREMIUM MEMBER

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    Then that means that the article lied or the writer of it was unaware of it and the various situations in which it has been used.
     
  6. Kemetstry

    Kemetstry going above and beyond PREMIUM MEMBER

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    Please give an example where it has been used in this exact fashion?




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  7. Keita Kenyatta

    Keita Kenyatta going above and beyond PREMIUM MEMBER

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    How about you just look it up for yourself and get the exact answer that you need. As soon as I read this reply, I typed in; houses seized through eminent domain and a whole bunch of stuff popped up.....then I said; "ish, if it was that easy for me then he can do it too. Stop pimpin...those days are over.




     
  8. cherryblossom

    cherryblossom Banned MEMBER

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    I could see this being more possible on FORECLOSED mortgages NOT active ones.
     
  9. cherryblossom

    cherryblossom Banned MEMBER

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    .... Previous permits to restructure mortgages without incurring losses for taxpayers have run into Constitutional problems or needed taxpayer funding. Under the Constitution, the government must pay the fair value for property seized under eminent domain. The courts have previously said this power extends to the seizure of mortgages.

    This means the holder of the credit risk would suffer a loss on the underwater portion of the loan. The government can then restructure the loan so the borrower is no longer underwater.

    The Supreme Court has long held that states cannot tax the federal government. There are potential losses through eminent domain as similar enough to keep investors from trying it. ....

    ...http://realestatemarbles.com/campga...in-to-seize-mortgages-from-private-investors/

     
  10. Kemetstry

    Kemetstry going above and beyond PREMIUM MEMBER

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    The article specifically says that this is a new way it's being used. Moreover, there is a cpourt case to overturn this usage of the law. Thus, why I asked the question. No one is saying that you cant use eminent domain. It is saying, not this way




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