[SatinDoll]

...and the lawlessness goes on, and on, and on...

[Gaffer]

It just goes to show you. An effing politician will do anything, ANY THING for a vote. As long as he is not using his own money.

I can’t say here what I think should happen to these public servants, but it involves a dark street.

[Menehune56]

Pure government theft.

Richmond Mayor Gayle Mclaughlin

[Thurifer the Censer]

If they succeed there will be no new loans written in that city......ever.

[Nip]

IMHO if, and hopefully it’s a very large if, the City of Richmond goes through with its eminent domain seizure of property it will stop any recovery in the nation wide housing market.

After all, what bank will make any loans to anyone who needs a mortgage to buy a home? Remember banks, like any other business need to make a profit (they too have bills and taxes to pay). Financing loans that get stolen from them means they will lose money, in large scale lots.

In this future environment, the only people who could get a home loan are those who could buy the property, for cash, outright.

I find it interesting that the dimocratic push for everyone to be able to buy mansions regardless of their financial ability may come crashing to earth by the actions of a greenie.

[freedumb2003]

Is everyone forgetting the requirement the seized property must be paid for by the seizing entity?

The city would have to pay off the mortgages (and it would be GREATER of the remainder or market price) out of its coffers. In cash.

[ZOOKER]

There's another way to look at this situation.

If banks want to do business in town after this (a big IF) they will have to charge more for loans that are still good - i.e. the homeowners who didn't buy too much house for their income and pay their mortgages. Once again those who pay their bills are paying for deadbeats.

Banks could also return to redlining (unofficially of course).

Or they could just leave town...

[Tzimisce]

So they’re gonna nationalize private property?

Typical Socialists.

[Alberta's Child]

Ironically, these idiots may be doing the banks a huge favor by seizing property like this. They'd probably have to pay off the mortgage, and in cases where the home is underwater that may be a great deal for the bank.

Remember -- a government isn't "stealing" anything in an eminent domain condemnation, since the rightful owner does have to be compensated for the property.

[Spirochete]

It sounds like they plan on impairing the obligation of contracts, thus violating Art 1 Sec 10 of the US Constitution.

[cookcounty]

A couple weeks ago we were notified by our bank that the State of California intended to seize a CD we have for “inactivity,” and would do so if we did not respond to them within 90 days. This is a CD we are holding to pay for grandma’s “final expenses,” with the instructions to the bank that it be renewed at every maturity with the best rate they have. We haven’t done anything else with it for almost 3 years.

Here’s the really crazy parts:

A) we don’t live in California
B) It’s a Missouri bank

The (Democrat) government of California is a blood-sucking insane gang of thugs.

[jeffc]

From the article:

The plan is the brainchild of Cornell University law school professor Robert Hockett and here's how it works:
"The fact of the matter is that underwater loans do default at massive rates," Hockett said. "Underwater loans are a major drag on the economic recovery. We have got to do something."

I guess letting the market work is out of the question, such is the liberal belief that the bigger the government, the better the government.