Tag Archives: Cities Weigh Eminent Domain for Underwater Mortgages

Several local governments across the country are considering using the power of eminent domain to seize underwater mortgages — a controversial move that has been drawing widespread criticism in recent weeks. While the governments are considering various ways how to use eminent domain, the basic approach seems to be that the local government would seek court approval to pay a “fair market” value to a lender or investor holding the home owner’s underwater mortgage water treatment. If the local government is granted approval to take control over the mortgage, it […]

Several local governments across the country are considering using the power of eminent domain to seize underwater mortgages — a controversial move that has been drawing widespread criticism in recent weeks. While the governments are considering various ways how to use eminent domain, the basic approach seems to be that the local government would seek court approval to pay a “fair market” value to a lender or investor holding the home owner’s underwater mortgage. If the local government is granted approval to take control over the mortgage, it would then […]