General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsRichmond, CA first to jump into eminent domain battle
Last edited Tue Jul 30, 2013, 07:04 PM - Edit history (1)
"After years of waiting on the banks to offer up a more comprehensive fix or the federal government, we're stepping into the void to make it happen ourselves," Mayor Gayle McLaughlin said in a conference call Tuesday.
On Monday the city sent letters to 32 investors - largely private-label security trusts - offering to buy 626 underwater mortgages at discounts to the homes' current value. If the offers are spurned, the letter said Richmond may use the power of eminent domain to condemn the mortgages and seize them, paying 80 percent of the homes' market value.
The city would then help the underwater homeowners refinance into mortgages in line with their homes' current worth.
Wall Street vehemently opposes the untested idea, claiming it violates property rights and would have a chilling effect on future mortgages in Richmond while leading to years of costly litigation.
http://www.sfgate.com/business/article/Richmond-first-to-jump-into-eminent-domain-battle-4695857.php
KamaAina
(78,249 posts)not the capital of Virginia.
Mayor McLaughlin is a Green, making Richmond (pop. ~100,000) the largest city in the country with a Green mayor. She led a contingent of Occupiers down the road to Oakland to support the main group there.
GiaGiovanni
(1,247 posts)California was ground zero for the mortgage crisis
Jesus Malverde
(10,274 posts)The Magistrate
(96,043 posts)This should be done all over the country.
Volaris
(10,463 posts)Last edited Tue Jul 30, 2013, 08:25 PM - Edit history (1)
is WHY THE FUCK EMMINENT DOMAIN EXISTS IN THE FIRST PLACE.
Fuck Wall Street. I say, you don't have Property Rights as Corporations ANYWAY, so any offer of Eminent Domain that pays out 80% is a fucking GIFT, you goddamn Grifters.
Good on the Mayor, and SHE has my support in this endeavor.
KamaAina
(78,249 posts)and you are 100% correct.
Volaris
(10,463 posts)there it's done=)
Starry Messenger
(32,374 posts)codemoguy
(36 posts)but a couple of possible issues I can see:
- lots of legal fees
- city will probably end up owning some number of houses
- I can't see a principle that would allow this action, but not allow the city to 'take' a car loan (and those are underwater from pretty
much the first day) ...repo'ing a car is analogous to foreclosure
uncharted waters are frequently treacherous...
edited for spelling
KamaAina
(78,249 posts)Foreclosed-upon potentially vacant properties are blight. Maybe if the car was propped up on cinder blocks in someone's yard?
codemoguy
(36 posts)just that it seems they could do it...
you never know who will be running the city in the future
KamaAina
(78,249 posts)or that you're taking it for some other public use such as building a highway.
Of course, some places play fast and loose with the definition of "blighted", such as Long Branch, NJ, which is trying to use eminent domain on a neighborhood of modest single-family homes next to the ocean so it can replace them with glitzier, and more lucrative, oceanfront condos.
codemoguy
(36 posts)to allow for building of high priced developments that will pay more taxes, or maybe 'bring jobs'
it's a risky power for gov't to have
awoke_in_2003
(34,582 posts)than letting the banks get the property for pennies on the dollar.
freshwest
(53,661 posts)Yes, I'm a socialist. So sue me!
Luminous Animal
(27,310 posts)Richmond leading the way with the launch of a Worker Cooperative Loan Fund!