A Pro-Homeowner Viewpoint | Eminently Reasonable – Using the Power of Eminent Domain to Restructure Underwater Mortgages is Constitutional, Beneficial and Administratively Feasible

“The bottom line is that preventing mass foreclosures, with its implications for halting blight, keeping property tax rolls healthy and maintaining vibrant communities, is an obviously legitimate public purpose that is consistent with the relevant Supreme Court precedent.”

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Eminently Reasonable

Using the power of eminent domain to restructure underwater mortgages is constitutional, beneficial and administratively feasible.

Local governments across the country are considering an innovative use of eminent domain. They propose to condemn underwater mortgages (those that exceed the fair-market value of the home) in their communities and restructure them so that home­owners can afford their payments and so that the new mortgage is for less than the fair market value of the property. If this proposal is implemented, the local government will pay the owner of mortgages of “underwater” homes the fair market value for the mortgages. The local government will then restructure each mortgage by reducing the principal amount owed to be in line with a mortgage that would be appropriate for the fair market value of the home. This will result in lower monthly payments. It will also result in a sustainable transaction, one in which homeowners can imagine ultimately paying off their mortgages, the American Dream of owning one’s home free and clear.

The financial industry is alarmed by this proposal, claiming that the sky will fall if it is implemented. But this proposal is constitutional, beneficial and administratively feasible. Local governments should give it a try as they seek to stabilize their communities.

Eminent domain is an ancient prerogative of sovereign governments. Federal and state governments have limited that power by requiring that a government use eminent domain to achieve a public purpose and pay just compensation upon its exercise. See, e.g., Brown v. Legal Foundation of Washington, 538 U.S. 216, 231-32 (2003). The U.S. Supreme Court has taken an expansive view of the “public purpose” requirement, holding that use of eminent domain to achieve as broad a purpose as economic development is a legitimate exercise of government power even when it involves taking land from one private party and giving it to another. Kelo v. City of New London, 545 U.S. 469 (2005).

Indeed, a New Deal-era Supreme Court case even contemplated this proposal, merely stating what should be obvious to us today: “If the public interest requires, and permits, the taking of property of individual mortgagees in order to relieve the necessities of individual mortgagors, resort must be had to proceedings by eminent domain; so that, through taxation, the burden of the relief afforded in the public interest may be borne by the public.” Louisville Joint Stock Land Bank v. Radford, 295 U.S. 555, 602 (1935).

Rest here…

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4closureFraud.org

Comments
5 Responses to “A Pro-Homeowner Viewpoint | Eminently Reasonable – Using the Power of Eminent Domain to Restructure Underwater Mortgages is Constitutional, Beneficial and Administratively Feasible”
  1. Alabama John says:

    Some banks are paying the taxes on occupied houses in hopes of using eminent domain to get title.

    • stripes says:

      That’s why Wall Street was allowed to create a quadrillion in fraud and why they are being allowed to rob us into fraudulently induced submission. To gain complete fraudulent control of our country, our freedom & our independence. Unfortunately alot of Americans are still believing the media and the politicians lies that this is our debt and our responsibility. The truth is, the FED’s credit is insolvent because of what Wall Street did, and it can never be repaid by the American people.

  2. stripes says:

    Eminent Domain is more Govt Corp fraud to seize the property of the American people under the guise of money owed. The banks are a quadrillion dollars over their limit of U.S. tax payer liability. Their debt is insolvent and a weapon of financial mass destruction. The bank debt is massive, unsustainable and can never be repaid by the American people.

  3. Michael T Pines says:

    Unfortunately, IMHO this would not be a legal use of Eminent Domain in my opinion. If tried the banks will tie it up in the courts for many years.

    Michael T. Pines

  4. Sarah says:

    Absolutely. The Bankster class and their paid for policiticians are already aware of the threat, so they have drafted legislation with the help of Jones Day et al. It is going to take much more effort.

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