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.
Everyone at Richmond City Hall is certainly forgetting. Until it’s time to pay up, that is.
Very true. But who sets the price? It should be the free market. But it will be a judge instead. And if you think the judge will have to be fair, just remember what happened to the GM bondholders.
It appears the city is talking about seizing the mortgage rather than the house itself and then paying the mortgage holder a reduced amount because the fair market value of the collateral has deteriorated. We do live in strange times, but I don't think this will fly under the banner of eminent domain.
In another piece on this idiot idea it was explained that the city (theoretically) resells the new, reduced mortgages to a private investment group. Which they think will work because the new mortgages will be (again theoretically) well below the so called market value of the property.
Besides the out and out communism here, I suspect there is a crony capitalist factor that is not being revealed. Some Dem crony is going to make a boatload of money on this.
Sorry about that ... I should have read your post before posting my own response. You beat me to it!