Calif. City OK With Seizing Mortgages From Banks
Eminent domain would be used to help Richmond homeowners
By Kevin Spak, Newser User
Posted Sep 11, 2013 12:29 PM CDT
In this March 8, 2011, file photo, a foreclosed house with sale pending sign is shown in Tigard, Ore.   (AP Photo/Don Ryan)

(Newser) – Eminent domain is usually used to seize homes from people, but Richmond, California, in the early hours of this morning gave a tentative green light to a plan that would use it to keep people in their homes. In a contentious 4-3 vote, the city council voted to continue pursuing a plan under which it would offer to buy and modify 624 underwater mortgages from banks—and use eminent domain to seize them if the banks refused, CBS 5 reports. Some 300 residents showed up for the meeting last night, the San Francisco Chronicle reports, with many wearing a yellow or red shirt to signal their stance on the issue.

The council also rejected a proposal to force the investment firm it's partnering with, Mortgage Resolution Partners, to provide insurance against lawsuits from unhappy lenders. Wells Fargo and Deutsche Bank have preemptively sued, in a case that hits court tomorrow. MRP has proposed similar programs elsewhere, but financial industry outrage has prevented it, Reuters explains. But Richmond has an eager Green Party mayor, Gayle McLaughlin, and about half its homeowners are underwater, owing more than their homes are worth. Other towns have also expressed interest in eventually joining in.

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clarenccharlie
Oct 2, 2013 12:21 AM CDT
wish ever one write & get the press& senate& congress to stop drugs to many drug pusher in Hawaii I'm surrounded by mafia friends they drug dealers & friends threat·en me first a few years back at my working place it not right have but have to defend my self need help stopping Hawaiian drug pusher & mafia inform on them get attention turn the table on them keep legal so I don't get arrested
cornelison
Sep 14, 2013 10:08 AM CDT
Get corporate money & unlimited campaign donations out of politics and actual human beings will have a chance of being represented at all levels of govt.
clarenccharlie
Sep 13, 2013 1:13 AM CDT
Wish they find all the Mafia & drug cartel, land & money find a legal way to put a dent to Hawaii criminal drughouse & mafia to many around .it about time some one put a stop to them keep it legal so people that help won't get arrested We want our town back kick the drug mafia out 40 years+ is to long are the going to be in business another 40 years I feel they spilled to much blood to many people got hooked on drugs to many died because of drugs stronger law for user & dealers double or triple the prison time that will save life (hahaha ) to change the law (hahahah) impossible