San Bernardino Will Try to Hammer "Nail House" Loans in 2013

Calwatchdog.com ^ | December 3, 2012 | Wayne Lusvardi

[WayneLusvardi]

What are called “nail houses” in China may be coming to the county of San Bernardino in 2013 by using eminent domain as a bail out from unfunded public pension debts.

The photo at right shows a property that has gained worldwide attention as a holdout from a freeway construction project in China. A now famous duck farmer owned the home — recently demolished after the owner finally “accepted” the Chinese government’s offering price. Holdout houses in China are called “nail houses” because homeowners refuse to be “hammered down” in price.

Mortgage Resolution Partners is a private mortgage hedge fund manager hired by the county of San Bernardino. It now has vowed to move ahead with its controversial plan to use eminent domain to buy out “underwater mortgages” from lenders. MRP’s plan is to take the mortgages by force of eminent domain law from lenders, reduce the amount owed on each loan and let the homeowners continue to live in their homes while making lower payments.

In San Bernardino County, it is mortgage lenders holding so-called “underwater mortgages” that are resisting being hammered down in price for their mortgages. Lenders are not going to sit still and allow performing mortgages to be taken “on the cheap” so that some politically connected mortgage consulting firm can reap an estimated $135 million windfall without a fight.

[Da Coyote]

And, of course, the next step is legislation designed to force investors to provide mortgage money (which will totally dry up.)

Following that, there’ll be the mandatory tax (after all, it’s Californicateia) to loan all those illegal aliens so that they can live in a house for which they’ll pay no taxes.

[mountn man]

Most be a lot of these types of homes...

because there are a whole lot of postings about them ;)

[bigheadfred]

Never post with a loaded hammer.

[GeronL]

If the price goes down, the property value and tax revenue drop...

I guess San Bankrupt-adino wouldn’t like that.

How about a flat property tax on all houses? This will not go down when property values drop?

Is that coming?

[Cletus.D.Yokel]

Nail Houses are

Really
Really
Really
Really

Important.

[Cyber Liberty]

Holdout houses in China are called “nail houses” because homeowners refuse to be “hammered down” in price.

How things have changed. When I was a kid, if there was a "holdout property owner" the Chinese government simply took the bloke out back and shot him. Makes me feel old.

(But a lot happier for the Chinese!)

[MtnMan101]

Patience my friend......
It takes about 15-20 seconds for F.R. to ‘post’
You might want to go back and remove the ‘other’ 3 posts of the same article.

[smoothsailing]

Never post with a loaded hammer.

When 4 single shot hammers will do! :)

[BenLurkin]

If a property is acquired by Eminent Domain then a Jury decides on the price.

If an owner doesn't want to come down on her price in a private transaction, then that is her business and nobody else's.