Wall Street warns against using eminent domain to seize underwater mortgages

The Hill ^ | 8/19/12 | Peter Schroeder

[Libloather]

You'll get to rent land - maybe.

[bravo whiskey]

i presume citizens of ATLANTIS are concerned.

[Usagi_yo]

Who’s this Wall street guy and who appointed him to warn us about anything?

Did Wall Street warn us about pumping 100’s of billions of dollars into TARP relief?

Banks should be bending over backwards to help fix the mortgage lending crisis. It’s better to get 65% of your money back then 20% — oh, that’s right, they think the tax payers should foot that bill because they’re too big to fail.

[Eric in the Ozarks]

This is such a terrible idea, i can’t believe any sane person would support it.

[microgood]

The fact that anyone would even consider such theft shows how little is left of this once great republic.

I wonder what the IRS would do with this since if banks forgive part of a home loan that is taxable income to the home owner.

[Heart of Georgia]

They’ll take it over and trade to China for our debt.

[ClearCase_guy]

But ... I heard NPR say wonderful things about this plan ...

[RKBA Democrat]

“Firms are warning that a governmental action to seize private property to reduce its value could throw the entire housing market off kilter.”

Can’t have financial markets thrown off kilter now. Kind of like that TARP thingy did.

I don’t agree with using emminent domain for this. But I can’t say I’d lose much sleep over it if it were to happen. Couldn’t happen to a nicer bunch.

[mojo114]

This is a link to Mortgage Resolution Partners management:

http://mortgageresolution.com/management

[unixfox]

Our Founding Fathers would have started shooting by now.

[truth_seeker]

1. If property owner in arrears on property taxes, local jurisdiction can lien or take said property.

2. If oproperty owner in arrears on mortgage loan, local jurisdiction is NOT a party to that contract, so has no business meddling in my opinion.

3. Re 2. above, it must be they claim the jurisdiction can take property under eminent domain, per Kelo decision whereby city/jurisdiction can take property for anything they want, to get more property taxes, to change uses, to remediate so called blight, which is often completely abused.

[Gabz]

If the property owner is arrears on the mortgage loan, they are most likely in arrears on the property taxes and thus the local jurisdiction is a party to the contract........

With that said — this is a truly scary concept.

My husband and I went 3 years without a steady/reliable income and the worst we got was 6 months behind on the mortgage - bad, I know - but we finally got it all square.

[E. Pluribus Unum]

Next they'll decide they can use eminent domain on bank accounts.

[HiTech RedNeck]

I’d never heard of eminent domain being used for this before.

[chuckee]

“Banks should be bending over backwards to help fix the mortgage lending crisis. It’s better to get 65% of your money back then 20% “

So we should politicize the process with local politicians beholden to the local electorate intruding on the contractual agreements made with national banks and investors so they can win favor with their electorate.Should you live in such a local jurisdiction, do you not think any bank with sense will not raise the level of mortgage rates in that jurisdiction to compensate for such onerous intrusion and perhaps redline the entire area refusing all future loans in the jurisdiction. I sure would if I did not want to guarantee loan losses in the loan portfolio.

[SeminoleCounty]

Big Banks vs Big Government: And we lose.

Means we got more bailouts and higher taxes coming

[truth_seeker]

“If the property owner is arrears on the mortgage loan, they are most likely in arrears on the property taxes and thus the local jurisdiction is a party to the contract........”

I guess you missed the meaning of what I said. Mortgage and taxes are two separate matters, and the city is NOT a party to the MORTGAGE contract. I know, I’m a real estate broker.

Cities do NOT use eminent domain to place a tax lien on property for delinquent taxes, they use a tx lien, and at some date may sell for taxes.

The concept of eminent domain is separate from taxes and separate from mortgages.

[ex91B10]

"Lenders are going to react and underwrite defensively to protect themselves,”

Which implies that they are not protecting themselves now. Why would an entity operate against their own interests?

The Community Reinvestment Act.

The Kenyan must go.

[ex91B10]

New York Sues Three Banks Over MERS Database

FTA: "The mortgage industry created MERS to allow financial institutions to evade county recording fees,”

Is this is how they will finance their land grab?

The Kenyan must go.

[Third Person]

The slippery slope is turning into a sheer drop.