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

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  •  Coffeetalk, you overstate your point (3+ / 0-)
    Recommended by:
    jpmassar, Egalitare, white blitz

    You say

    If you are a bank, and the message is "in Richmond, any time we want, we can seize your mortgage and pay you 50 cents on the dollar,"
    No one said that. What was said is that the city can buy properties at fair market value. The fallout could be that the mortgage industry will be more hesitant to sell mortgages at zero percent down at the height of a real estate bubble. Because, if the owner made a down payment and housing prices have remained reasonably stable, the fair market value will always be greater than the value of the outstanding mortgage.
    •  cherrym - I don't think the City is buying (3+ / 0-)
      Recommended by:
      coffeetalk, Sparhawk, jpmassar

      properties. The City could join other investment groups that are buying properties in foreclosure, but that's not what they want to do. The City wants to use ED in a novel fashion to force the lenders to write down the mortgage at the same time as the sale of the home. That's the part that is unique.

      "let's talk about that"

      by VClib on Sun Sep 15, 2013 at 01:54:07 PM PDT

      [ Parent ]

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