Banksters threaten California city that approves 'Eminent Domain for the People'

[marmar]

Published on Wednesday, September 11, 2013 by Common Dreams

Despite Big Bank Threats, City Approves 'Eminent Domain for the People'
Richmond, Calif. approves measure to seize 'underwater homes' in order to write-down mortgages and save homeowners

- Jon Queally, staff writer


The city council of Richmond, California on Wednesday approved a bold plan to use the authority of the municipal government's 'eminent domain' laws to help underwater homeowners.

Bucking the threat of lawsuits from large banks and other financial interests, approval of the measure is a victory for the city's progressive-minded Mayor Gayle McLaughlin, not to mention the city residents struggling with homes that lost a majority of their value in the wake of the financial collapse of 2008.

According to Reuters:

Richmond can now invoke eminent domain if trusts for more than 620 delinquent and performing "underwater" mortgages reject offers made by the city to buy the loans at deep discount pegged to their properties' current appraised prices to refinance them and reduce their principal.

A mortgage is under water when its unpaid balance is greater than its property's market value.

MRP has failed to get similar plans approved by local governments elsewhere - most recently in North Las Vegas, Nevada and earlier this year in San Bernardino County in Southern California - as the mortgage industry and local real estate businesses rallied against them.

Though the city council's approval will come as a positive step by housing and economic justice advocates in California and elsewhere, the legal challenges will likely be intense. .................(more)

The complete piece is at: http://www.commondreams.org/headline/2013/09/11-1

[NYC_SKP]

1. Good. Let's be clear, wealth didn't "disappear" in 2008. It was stolen from the middle class.

My home lost way more than 50% of it's value that will never return, while the wealthiest communities loss just a tad, if any, value and are back on the rise.

THOSE homeowners are still whole and on their way to further riches while the rest of us will die without ever seeing the former value of our homes return.

Fuck them all.