Wow, go Richmond! "On July 29, the city, according to Carolyn Said of the San Francisco Chronicle, “sent letters to 32 banks and other mortgage holders offering to buy 624 underwater mortgages at discounts to the homes’ current value. If the offers are spurned, the letter said Richmond may use the power of eminent domain to condemn the mortgages and seize them, paying court-determined fair market value.” “In a hypothetical example, a home mortgaged for $400,000 is now worth $200,000. The city plans to buy the loan for $160,000, or about 80 percent of the value of the home, a discount that factors in the risk of default. Then, the city would write down the debt to $190,000 and allow the homeowner to refinance at the new amount, probably through a government program.” allgov/news/top-stories/banks-threaten-to-punish-cities-that-use-eminent-domain-to-help-underwater-homeowners-130804?news=850769
Posted on: Sun, 04 Aug 2013 13:47:34 +0000
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