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Fri Apr 27, 2018, 11:05 AM

California City Threatens to Use Eminent Domain to Stop Bank Foreclosures (2013)

This is fantastic! It's from 2013, but I love how they took on the banks by shoving those low appraisals right back in their faces.

California City Threatens to Use Eminent Domain to Stop Bank Foreclosures

A town in California is making headlines on how it is tackling its foreclosure crisis. In Richmond, almost half of the city’s residential mortgage holders are underwater. In a major development last week, Richmond became the first city in the country to offer to purchase mortgages of distressed homeowners from Wall Street banks and other lenders. Under a plan approved by the city council in April, the city can also use its eminent domain authority to purchase loans in order modify them and allow families to avoid foreclosure and stay in their homes. “The banks sold our community predatory loans, and now they have no solution they’re presenting for this crisis,” says Richmond Mayor Gayle McLaughlin. “We are stepping in by taking these troubled loans off the hands of the banks, and we’re paying them fair market value for these loans. And then we’re working with the homeowners to refinance and modify loans in line with current home values. We call on the banks to voluntarily sell us these loans, and if they don’t cooperate, we will be considering eminent domain.”

https://www.democracynow.org/2013/8/6/california_city_threatens_to_use_eminent

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Reply California City Threatens to Use Eminent Domain to Stop Bank Foreclosures (2013) (Original post)
C Moon Apr 2018 OP
MichMan Apr 2018 #1
C Moon Apr 2018 #2
MichMan Apr 2018 #3
C Moon Apr 2018 #4

Response to C Moon (Original post)

Sun Apr 29, 2018, 07:47 AM

1. Why did you post an article from 5 years ago ?

What ever happened to this program, Was it successful? Is it still continuing?

I could not find any references to show that it was ever implemented in the first place

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Response to MichMan (Reply #1)

Sun Apr 29, 2018, 01:07 PM

2. I thought it was interesting the way the mayor tried to use the low appraisals against the banks.

Buying the property and selling them back to the owners at the low appraisal.
The banks got pissed off and tried to lobby their effort away.
Yeah, I don't know what happened either, but it was a gallant effort to save some homeowners.

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Response to C Moon (Reply #2)

Sun Apr 29, 2018, 01:58 PM

3. I could find no info that it was ever implemented at all

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Response to MichMan (Reply #3)

Sun Apr 29, 2018, 03:35 PM

4. What is your problem? Good bye.

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