Mortgage mods by eminent domain: Be an advocate this time, for a change
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San Bernardino homeowners may be blacklisted from future Fannie Mae and Freddie Mac (collectively Frannie) guarantees.
The Federal Housing Finance Agency (FHFA) has released a statement cautioning counties such as San Bernardino that using eminent domain to seize underwater mortgages (also called reverse eminent domain) may be unconstitutional and have a lasting impact on county residents’ ability to borrow money to purchase their homes.
The FHFA has not yet specified what, if any, action it will take if these reverse eminent domain projects are implemented. The agency is soliciting comments from the public via email: eminentdomainOGC@fhfa.gov. The last day for comments is September 7, 2012.
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About The Author
ft Editorial Staff
is the writing staff comprised of legal editor Fred Crane, In-House Broker Consultant Fernando Nunez and writer-editors Connor P. Wallmark, Giang Hoang-Burdette, Jeffery Marino, Carrie B. Reyes, Sarah Cantino, Matthew Taylor and Matthew Shade.
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i absolutely will not be a party to more abuse of eminent domain. just as the Kelo case in connecticut was wrong so too is it wrong in this case.
learn the facts here and see the true motivations of the hacks proposing this…it is nothing more than the latest case of crony capitalism. by allowing ‘condemnation’ of performing loans ONLY we guarantee that the risk to the ‘businessmen’ is NIL, ZIP, ZERO, NADA! how nice it must be for them to have a virtually guaranteed rate of return far in excess of that they can earn without a little help from the government.
for first tuesday to endorse this is shameful. this is just the latest in a long line of nanny state responses that will have the taxpayer footing the bill for losses as they garner none of the profits. good god you cannot make this shite up.
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Yes I would agree that to advocate for the new scheme of Eminent Domain is irresponsible…so I ask the authors if you are one of the people that put their retirement into mortgage securities would you be in favor of this Eminent Domain scheme.
Interesting that a company that educates industry professionals wouldn’t be out there saying that personal financial management skills and education is what was lacking (I had no idea what I was signing!) during the bubble and that a safety net for bad decisions is not the way to fix this….why should these people just walk away from what they signed up for….if the market had kept going up, what do you think about an eminent domain scheme that allows the government to come in and take half the equity due to appreciation and tell the home owner thanks we’re the government and your screwed.
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well stated tom z. the subject of eminent domain should be near and dear to anyone who respects private property and the rights of the owners. for those of us who encourage folks to own real estate it should be first priority. whether grandma and her old shack on the strand in atlantic city or the note holder of a PERFORMING MORTGAGE. the use of eminent domain by san bernardino is surely the camels nose under the tent. that they are considering using it to SHANK HOLDERS OF MORTGAGES THAT ARE NOT IN DEFAULT is so far beyond preposterous as to be insane. this is the work of a few ‘venture capitalists’ who think a guaranteed return, resulting from a government confiscation qualifies as a venture. read up people…this idea came from some social engineer princess in san francisco…where there is NOTHING they do not think the government has a say in. the same folks that outlawed toys in kids happy meals has decided that they want to have an investment WITH NO RISK, BUT A FAT RETURN. hey, why not.
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