Tim Rood wrote an interesting post today on
Here’s a quick excerpt
Several fair housing and civil rights
groups have come to the side of the City of Richmond, California as it attempts
to use its power of eminent domain to buy and modify underwater mortgages on
some local homes. The coalition has
filed an amicus brief in federal
court today supporting the City’s opposition to a motion filed to block its
proposed purchases.
A thorough background of the issue can
be found in MND reports here,
and here
, but briefly, Richmond, generally described as a working class northern
California city, has sent letters to 32 mortgage servicers offering to buy 624
mortgages at the fair market value of the underlying property, in some cases 25
cents on the dollar, and apparently making clear its intention to use eminent
domain if the offers are not voluntarily accepted. Wells Fargo Bank and Deutsch Bank subsequently
filed suit to block the plan.
…(read more)
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Read the rest of this great post here