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View Diary: Can a Small California City Take on Wall Street - And Survive? (298 comments)

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  •  some dicta from the Raiders case, IIRC, (4+ / 0-)

    says they can take real property and other property that is closely connected to real property (or something like that).  that may get 'em the ability to seize the mortgage rights, but its not.clear to me how the p note is impacted.

    the valuation issue is also interesting: take a 100k fmv house and a 200k mortgage.  the city would seize the mortgage for 80k, split 10k with its wall street backers, then sell the mortgage back to other wall street investors for 90k.  tough to see how they could claim the 80k as fmv when they turn around and sell it for 90k.  

    interesting stuff.

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