Comments on: Scheme to seize underwater mortgages

By: Colorado recalls; NYC voters spurn Eliot Spitzer - Overlawyered

Colorado recalls; NYC voters spurn Eliot Spitzer - Overlawyered — Wed, 11 Sep 2013 14:30:07 +0000

[…] P.S. Less happily, voters in Richmond, Calif. are going to let the city administration proceed with a scheme to seize underwater mortgages by use of eminent domain [Daniel Fisher, earlier] […]

By: DensityDuck

DensityDuck — Wed, 21 Aug 2013 21:55:53 +0000

Gideon Kanner is an idiot.

“most people writing on that subject talk about the right to take, and don’t seem to have a clue that the would-be takers of these mortgages… will have to pay just compensation, i.e., fair market value, not some bargain basement figure pulled out of thin air.”

The “bargian basement figures pulled out of thin air” are what THE BANK ITSELF says the house is worth.

On the other hand…
“we are grateful that we are retired and can now view all that as a spectator sport.”

So, you bought your house in 1972 for cash, and now you’re fat and rich off of refinancing and ready to tell us all how your good luck means we have to just shut up and Deal With It?

By: Bob Lipton

Bob Lipton — Sun, 18 Aug 2013 21:17:06 +0000

This and Detroit are fine examples of why one should not lend money. Unless, of course, one wishes to get rid of “friends”.

Bob

By: Hugo S. Cunningham

Hugo S. Cunningham — Sun, 18 Aug 2013 16:17:10 +0000

My original understanding of eminent-domain mortgage schemes was that they would pay bona-fide market value, in places where it was substantially less than face value, before arranging a new, downsized loan to solvent employed homeowners able to keep up on the new payments.

Advantage:
Home remains occupied by someone with incentive to maintain it.
Disadvantage:
Unless administrators are careful, they create incentive for solvent homeowners to default in hopes of better deal. (This is why the new competently-run Fannie Mae did not like the idea.)

Has the honest eminent domain proposal been sidelined nationwide? Was Richmond CA’s crooked, low-ball approach the real plan from the beginning?