Kalifornia City To Use Eminent Domain To Seize Houses - Redistribute Them To The Poor

[Patranus]

Richmond, CA -

Now the city hopes to pioneer a drastic new plan: use the power of eminent domain to seize some of those mortgages from the private investors who hold them in mortgage-backed securities, then slash tens of thousands of dollars off the principal, making them affordable.

http://blog.sfgate.com/ontheblock/2013/06/16/6285/

City is seizing legally owned private property to redistribute it to someone else.
This is exactly what happened during the communist revolution in Russia.
What a joke.

Welcome to the People's Republic of Kalifornia.

 

[techie81]

The government knows no bounds here. Disgusting.

 

[syd2oo2]

The commies are coming .

 

[CrackRabbit]

Kelo vs New London made it that way.
Blame the SCotUS.

The difference here is that the property is being taken from the banks and redistributed to residents instead of from residents to developers.
Still doesn't make it right though.

 

[Incorruptible]

Just another reason we don't need big government and liberalism.

 

[Argo]

That's going to do wonders for real estate prices in that city....

 

[JMapleton]

These people are insane. One lady owes $300k on a $150k house. How?!?!

Another lady owes $440k on a house that is now worth $220k. Why not just let the bank take it? Is the sentimental value of that house worth $200k to you?

 

[gevorg]

these underwater folks can just strategically default like most big businesses and even governments do

 

[HeXen]

Locked interest rates and property value depreciation, that's how.

 

[BoomerD]

Richmond is North Oakland. Not too much difference in the two cities...and they're only separated by a few miles at the most...BOTH cities suffer from the same infestation of hood rats...gangs, drugs, hooliganism, high crime, etc.

The best solution for both cities is to turn the bulldozers loose and flatten them...then rebuild.

 

[Greenman]

Richmond is North Oakland. Not too much difference in the two cities...and they're only separated by a few miles at the most...BOTH cities suffer from the same infestation of hood rats...gangs, drugs, hooliganism, high crime, etc.

The best solution for both cities is to turn the bulldozers loose and flatten them...then rebuild.

It ain't the neighborhood, it's the neighbors.

 

[BoomerD]

It ain't the neighborhood, it's the neighbors.

zackly...but, remove the neighborhood...the neighbors will move elsewhere.

 

[EagleKeeper]

It ain't the neighborhood, it's the neighbors.

zackly...but, remove the neighborhood...the neighbors will move elsewhere.

And relocate in your backyard.

Can not have that.

 

[BoomerD]

And relocate in your backyard.

Can not have that.

heh...I relocated my back yard...

 

[nehalem256]

The best solution for both cities is to turn the bulldozers loose and flatten them...then rebuild.

It ain't the neighborhood, it's the neighbors.

Which is why you make sure the neighbors haven't left before you release the bulldozers.

 

[BigDH01]

Richmond, CA -

http://blog.sfgate.com/ontheblock/2013/06/16/6285/

City is seizing legally owned private property to redistribute it to someone else.
This is exactly what happened during the communist revolution in Russia.
What a joke.

Welcome to the People's Republic of Kalifornia.

This is slightly misleading if I'm reading the article correctly. They are planning on seizing the mortgages themselves from the MBS holders and cutting the price for the homes' current owners. It's a way to get some equity in the homes for the homeowners while forcing the losses upon the investors. Right or wrong, that looks to be what they are trying to do. A better idea might just be to help those homeowners strategically default so they can begin to start over.

 

[DCal430]

Around 80% of all mortgages are held by some kind of Government Entity, this plan will NOT work for these as they cannot use Eminent Domain against, the county, state, or federal government.

 

[halik]

Richmond, CA -

http://blog.sfgate.com/ontheblock/2013/06/16/6285/

City is seizing legally owned private property to redistribute it to someone else.
This is exactly what happened during the communist revolution in Russia.
What a joke.

Welcome to the People's Republic of Kalifornia.

Err you still have to *pay* people when you eminent domain property. Where are they gonna find the money?

 

[waggy]

Kelo vs New London made it that way.
Blame the SCotUS.

The difference here is that the property is being taken from the banks and redistributed to residents instead of from residents to developers.
Still doesn't make it right though.

exactly. with that ruleing it pretty much said you do not own the property. if the government wants it for any reason they are going to take it.

I'm not surprised and expect to see this happen far more.

 

[blackangst1]

This is slightly misleading if I'm reading the article correctly. They are planning on seizing the mortgages themselves from the MBS holders and cutting the price for the homes' current owners. It's a way to get some equity in the homes for the homeowners while forcing the losses upon the investors. Right or wrong, that looks to be what they are trying to do. A better idea might just be to help those homeowners strategically default so they can begin to start over.

Thats how I read it...

 

[Jhhnn]

Err you still have to *pay* people when you eminent domain property. Where are they gonna find the money?

True, but that's based on valuation, not loan balance. An investor group is pitching the idea.

http://www.mercurynews.com/business...ain-could-be-used-battle-against-foreclosures

As usual, Pa-Troll-Us mis-states the facts in the thread title. No redistribution to the poor is proposed.

 

[Jhhnn]

Around 80% of all mortgages are held by some kind of Government Entity, this plan will NOT work for these as they cannot use Eminent Domain against, the county, state, or federal government.

Incorrect. Entities like Fannie Mae do not hold mortgages, they insure mortgages. Investors own the mortgage pools.

 

[NesuD]

This is slightly misleading if I'm reading the article correctly. They are planning on seizing the mortgages themselves from the MBS holders and cutting the price for the homes' current owners. It's a way to get some equity in the homes for the homeowners while forcing the losses upon the investors. Right or wrong, that looks to be what they are trying to do. A better idea might just be to help those homeowners strategically default so they can begin to start over.

This ^^!

 

[Jhhnn]

This is slightly misleading if I'm reading the article correctly. They are planning on seizing the mortgages themselves from the MBS holders and cutting the price for the homes' current owners. It's a way to get some equity in the homes for the homeowners while forcing the losses upon the investors. Right or wrong, that looks to be what they are trying to do. A better idea might just be to help those homeowners strategically default so they can begin to start over.

As we've seen elsewhere, servicers are often very, very slow to foreclose & sell empty delinquent properties, which can be extensively vandalized, blighting communities. Value can deteriorate to zero before communities are forced to demolish what have become nuisances. That's because servicers can line their pockets with fees in the process, double-fucking investors.

 

[nehalem256]

As we've seen elsewhere, servicers are often very, very slow to foreclose & sell empty delinquent properties, which can be extensively vandalized, blighting communities. Value can deteriorate to zero before communities are forced to demolish what have become nuisances. That's because servicers can line their pockets with fees in the process, double-fucking investors.

Weren't there a lot of people throwing a fit a few years back because the mortgage companies didn't take enough time to cross all the T's and dot all the I's? Something about robosigning?

And now you are complaining they are taking too long?