City to use Eminent Domain to Buy Underwater Homes.Submitted by ric.850 on Tue, 07/30/2013 - 10:37
Not sure what to think of this. I'm feeling conflicted. I don't know if I like the idea of Local Governments buying up houses, but I do like the idea of sticking it to the banks. Your thoughts?
"The power of eminent domain has traditionally worked against homeowners, who can be forced to sell their property to make way for a new highway or shopping mall. But now the working-class city of Richmond, Calif., hopes to use the same legal tool to help people stay right where they are.
Scarcely touched by the nation’s housing recovery and tired of waiting for federal help, Richmond is about to become the first city in the nation to try eminent domain as a way to stop foreclosures.
The results will be closely watched by both Wall Street banks, which have vigorously opposed the use of eminent domain to buy mortgages and reduce homeowner debt, and a host of cities across the country that are considering..."