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Thread: California county plans to use Eminent Domain as a foreclosure fix - by condeming mortgages

  1. #1

    California county plans to use Eminent Domain as a foreclosure fix - by condeming mortgages

    http://www.latimes.com/news/opinion/...,4424169.story

    I work in this business, but this one has me very confused. The use of Eminent Domain to seize underwater mortgages to keep homeowners out of foreclosure. I doubt this is legal but thoughts?

  2. #2
    Cyburbian
    Registered
    Apr 2012
    Location
    Sasebo, Japan
    Posts
    104
    "To avoid encouraging people to default, the relief would be available only to borrowers who'd remained current on their payments. "
    Foreclosure while still staying current? Not quite sure how that happens.

    And this doesn't seem like a smart move. If anything I think it will work in the opposite way it intends. Who ends up paying taxes on the sale of the home? Not to mention if you're reselling these homes at less than the value, the homeowner can use that to have their property tax reassessed at a lower value. Leading to less money for the state.

    The major problem here is that it's treating homes as investments. People need to stop looking at it like that. The place where you get shelter is not an investment. Period. It shouldn't be treated like one.

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