California Municipalities May Seize Private Property To Redo Mortgages
- Post 06 July 2012
- By Copy Editor
Several cities in California are reportedly seeking to utilize their eminent domain power to renegotiate mortgages. The plan is to seize private homes about to enter foreclosure from banks, pay the banks “just compensation” – which may or may not be the full amount of the loan – unilaterally downgrade the principal loan amount on behalf of the resident, and then resell the mortgages to other lenders.
So, to take an example, assume there is a homeowner in Ontario, California who bought a house for $300,000 that is now worth $150,000. The municipality would seize the property, pay the banks something for it, unilaterally decide that the mortgage is now $150,000, and resell it to a bank. Taxpayers would foot the difference. ...continues at Breitbart.com
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