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View Diary: How the Big Banks are Continuing to Syphon Wealth from Our Communities & Our Local Govenments (27 comments)

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  •  great point (4+ / 0-)
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    TheOrchid, elwior, Spedwybabs, 3goldens

    This is discussed in our report (on page 17 -->

    Robert Hockett, a Cornell Law Professor, has advanced a plan whereby cities, in partnership with private investors, would purchase underwater mortgages (the loan not the actual property) for the fair-market value. By using eminent domain, the city can take possession of mortgages and write them down to current market values, preventing the loss of billions of taxpayer dollars and creating an enormous economic stimulus for the city.
    We'll be writing more on this in a later post.
    •  Eminent domain used the right way is (2+ / 0-)
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      elwior, FG

      A real boon for communities.  It can be used to KEEP the homeowners in their homes by having the new entity reduce the mortgage principle or issuing a new, lower loan.  

      It can also be used in REO, Real Estate Owned, i.e. bank owned properties, empty properties for affordable housing in the NY City, which has a very short  supply of affordable housing at all income levels.

      Debra "But what I have concluded over the years is that talent is universal, but opportunity is not." SOS Clinton

      by debcoop on Tue Apr 02, 2013 at 10:52:50 AM PDT

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    •  I noticed in Detroit (1+ / 0-)
      Recommended by:

      That despite the fact that I can afford cash for these properties. The banks have inserted a caveat that I have to qualify for their loan to purchase the property from them. So not only would I have to pay for a loan application I did not need. They get to decide if I can buy the place or not.

      How is this even legal?

      It is crap like this propping up the market to keep their profits rolling in at our expense.

      "Til you're so fucking crazy you can't follow their rules" John Lennon - Working Class Hero

      by Horace Boothroyd III on Tue Apr 02, 2013 at 11:55:39 AM PDT

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