General Discussion

Lee-Lee

(6,324 posts)

15. I worry about the unintended consequences from this

Wed Aug 7, 2013, 08:19 PM

Aug 2013

as in, will any lenders be willing to make loans in these cities going forward, knowing that they stand the risk of taking a huge loss any time values drop and the municipality seizes the property just to refinance the homeowner.

It certainly will have to factor into their risk analysis going forward. They will likely either refuse to lend in these areas or set much higher requirements for down payment and credit scores.

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'Eminent Domain for the People' Leaves Wall Street Furious [View all] G_j Aug 2013 OP

Corporate blowback. AKA think Aug 2013 #1

Love the title of your OP... ljm2002 Aug 2013 #2

It's an awesome move G_j Aug 2013 #3

The banks were essentially clearcutting whern they made loans that were unaffordable Skink Aug 2013 #4

or loans that were liable to default/ kr/ clearcutting indeed. HiPointDem Aug 2013 #6

kr HiPointDem Aug 2013 #5

Good, for once average person is not the one left holding the bag PowerToThePeople Aug 2013 #7

There is probably a retiree or pensioner on the other side of that loan dkf Aug 2013 #62

or a mitt rmoney / koch bro investment account. PowerToThePeople Aug 2013 #65

Looked up his investments and that is doubtful. dkf Aug 2013 #67

I am trying to find something with decent numbers PowerToThePeople Aug 2013 #69

Something like this? dkf Aug 2013 #70

no. I was looking for where mortgage debt was held. PowerToThePeople Aug 2013 #71

Vast majority is Fannie / Freddie. dkf Aug 2013 #78

many pension funds are invested in mortgage securities Bully Taw Aug 2013 #93

Straw Man. Also, prudent fund managers are more than aware of the current risk factors Ikonoklast Aug 2013 #72

+1000 GoneFishin Aug 2013 #76

So you side with Wall Street again? To guess at your point here, you rhett o rick Aug 2013 #79

Boom! Orrex Aug 2013 #8

That link is not working out for me. n/t JimDandy Aug 2013 #33

Damn you! Orrex Aug 2013 #42

Nice! Very nice! JimDandy Aug 2013 #43

Wow, Orrex, it took them 3 years to catch up with you. LuvNewcastle Aug 2013 #56

I should demand royalties! Orrex Aug 2013 #58

Ah,did the big bad,bankie wankies get their cockroach feelies hurt? Rain Mcloud Aug 2013 #9

What would be really wild is for Detroit to declare eminent domain over it's distressed areas... Spitfire of ATJ Aug 2013 #10

That actually sounds like a great idea TxDemChem Aug 2013 #14

Homesteading requires you buy the property to live on it as your primary residence.... Spitfire of ATJ Aug 2013 #25

I'm concerned about where that money would come from TxDemChem Aug 2013 #35

Eminent domain can allow the city a wide lattitude to seize the property.... Spitfire of ATJ Aug 2013 #37

I never considered bonds. TxDemChem Aug 2013 #95

I actually have been looking at property in Detroit as an investment the last few weeks Lee-Lee Aug 2013 #19

At the height of the crash I saw houses selling for $75. Spitfire of ATJ Aug 2013 #24

But with anywhere from $5000-$20000 in back taxes the buyer has to pay Lee-Lee Aug 2013 #27

There comes a time when you just have to set your priorities... Spitfire of ATJ Aug 2013 #30

Getting them to forgive back taxes is going to be hard. JVS Aug 2013 #54

I don't even think they'd need to used eminent domain. They could probably seize a lot ... JVS Aug 2013 #52

The banks think that's their job. Spitfire of ATJ Aug 2013 #90

The moneyed interests use eminent domain when it suits them... KansDem Aug 2013 #11

MUHahahahahah ...fuck them! n/t L0oniX Aug 2013 #12

This would fuck-up their plan. DeSwiss Aug 2013 #13

I worry about the unintended consequences from this Lee-Lee Aug 2013 #15

This encourages banks to refinance at reasonable values and rates. Gravitycollapse Aug 2013 #16

Short term vs long term implications Lee-Lee Aug 2013 #17

Like an abuse victim staying with the abuser because they're afraid. Gravitycollapse Aug 2013 #18

"Make it so banks are not legally allowed to give out such unstable loans" SomethingFishy Aug 2013 #21

this doesn't make sense bigapple123 Aug 2013 #29

"5 Reasons Banks Would Rather Foreclose" Gravitycollapse Aug 2013 #32

that bigapple123 Aug 2013 #36

Be careful hueymahl Aug 2013 #45

I agree with you about bad loans Lee-Lee Aug 2013 #22

There's no way we could get too tight a grip on financial regulation. Gravitycollapse Aug 2013 #26

That sounds all well and good Lee-Lee Aug 2013 #28

"We're better off. Even if it doesn't feel like that right now. Our future is better off." Gravitycollapse Aug 2013 #31

If Obama gets rid of Fannie and Freddie and someone wants to take a loan from this area dkf Aug 2013 #63

They want to only apply this to performing loans Morganfleeman Aug 2013 #74

And also requiring larger down payments, which many will balk at. 7962 Aug 2013 #89

"will any lenders be willing to make loans in these cities going forward,". Good. Fuck 'em. jtuck004 Aug 2013 #38

guess what bigapple123 Aug 2013 #39

Guess what? People have always had trouble leaving the plantation - this is nothing new. jtuck004 Aug 2013 #40

well bigapple123 Aug 2013 #49

deep... jtuck004 Aug 2013 #53

And who is the entity putting together this deal? dkf Aug 2013 #68

It's always a drag when thieves are involved, everyone may lose. Pensioners may get less, but jtuck004 Aug 2013 #83

Well this is another mortgage maker with a guaranteed profit through government seizure. dkf Aug 2013 #84

Oh, absolutely. But the alternative is to do nothing, which leaves jtuck004 Aug 2013 #86

The real estate market is recovering. This is exactly the type of action that will hit it. dkf Aug 2013 #87

Without the 85 billion the government is throwing in, which is primarly bolstering jtuck004 Aug 2013 #92

Obama wants to do away with Freddie and Fannie. dkf Aug 2013 #66

So? What's your point? nm rhett o rick Aug 2013 #80

They want the government OUT of banking, the opposite of what you want. dkf Aug 2013 #88

Amen! burrowowl Aug 2013 #47

No loans, no new sales. Homeowners will be stuck. dkf Aug 2013 #64

That is what I worry about Lee-Lee Aug 2013 #73

Maybe our credit unions will make the loans. We should nationalize the big banks. rhett o rick Aug 2013 #81

If that's a small credit union more specific to that area you've just damaged them significantly. dkf Aug 2013 #82

Credit unions will be pulverized by this Yo_Mama Aug 2013 #101

Well, it seems that eminent domain in service to business is AOK, but Trailrider1951 Aug 2013 #20

Wait until Jubilee. Octafish Aug 2013 #23

People need to consider that: bigapple123 Aug 2013 #34

nothing different than if they were building a new road quaker bill Aug 2013 #55

It's not as straightforward as that Morganfleeman Aug 2013 #59

No need for 'blight'. Thank 'Kelo vs. New London' for that. Xithras Aug 2013 #91

you got it quaker bill Aug 2013 #94

Strongly disagree Morganfleeman Aug 2013 #96

This is exactly right Morganfleeman Aug 2013 #57

Well, until this is cleared up I wonder who's going to be making loans in Richmond? Yo_Mama Aug 2013 #61

K & R !!! - Hey G_j, Did You See This ??? WillyT Aug 2013 #41

I sure hope this continues G_j Aug 2013 #46

My Mayor!!! BuddhaGirl Aug 2013 #44

you are fortunate G_j Aug 2013 #60

Of course Wall Street is furious Samantha Aug 2013 #48

no not really bigapple123 Aug 2013 #50

"by investors" --- PERFECT! DontTreadOnMe Aug 2013 #51

You might be right -- I heard the banks would take the hit from the interview Samantha Aug 2013 #75

Since part of the overall strategy on the right is to prevent people from owning their own homes, brewens Aug 2013 #77

This gets around the Bankruptcy Reform Act of 2005 happyslug Aug 2013 #85

Yeah well, nobody IS going to be writing mortgages in Richmond CA Yo_Mama Aug 2013 #97

This exactly what I was saying Lee-Lee Aug 2013 #98

Of course you wouldn't Yo_Mama Aug 2013 #99

Well someone had to put a stop to Wall Streets endless lust for money. Rex Aug 2013 #100