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Other cities eye eminent domain to rescue underwater borrowers

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Mortgage Professional America | 27 Nov 2013, 08:19 AM Agree 0
A California city’s controversial plan to help underwater homeowners is starting to attract attention in other parts of the country.
  • GENE ANDERSON | | 27 Nov 2013, 10:35 AM Agree 0
    If regulators would take the profit out of foreclosures banks would re evaluate. Foreclosures which have the potential of profit are foreclosed. Properties with less potential are dealt with in a different manner as of 2012-13.
    The authority exists to re-write most every note.
    It is expensive to maintain a foreclosed property but as long as second and third INTERESTED parties are profiting their influence can affect banking decisions.
    I, personally think, that there is case law at the state and federal level that supports the position of Richmond California.
    ... a concept that the bank does not have to maintain a property or even pay homeowners association fees does exist as a BANKERS thought.
    The banks were well aware of EMINENT DOMAIN when they made the mortgage so this should not come as a surprise.
    ONCE THE PROFIT motivation IS REMOVED FROM THE FORECLOSURE PROCESS THINGS WILL CHANGE.
  • steve | | 27 Nov 2013, 11:28 AM Agree 0
    What absolute trash,trying to make the theft of private property sound noble? And led by a noble band of former Bankers? Forclosures are a tiny percentage of homeowners and their intrests do not trump the rights of commerce in a "Free" country.
  • Dan | | 06 Dec 2013, 09:50 AM Agree 0
    I wonder how many of those upside down mortgages were actually fueled by "bidding wars" between buyers. Buyers offered thousands of dollars more on an offer to win a contract. California was notorious for this behavior!!! Yet, no mention is ever made about that.
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