White House Skeptical of Plan to Seize Mortgages by Eminent Domain
The Obama administration has concerns with a proposal—backed by a one-time major fundraiser to President Barack Obama—that would use eminent domain to seize and restructure mortgages, according to a White House official.
The eminent-domain gambit is being advocated by Steven Gluckstern, the chairman of Mortgage Resolution Partners, a San Francisco-based venture capital firm that has been the guiding force behind three California municipalities that are considering the approach.
Mr. Gluckstern, an entrepreneur and former insurance executive, took an early role as a major fundraiser for President Barack Obama shortly after the then-Illinois senator announced his White House bid in 2007.
Mr. Gluckstern and his wife hosted Mr. Obama at their Manhattan home for a fundraiser in April 2007. A photograph from New York Magazine shows Mr. Gluckstern standing next to another prominent financier and philanthropist: George Soros, who is seated in the photograph to the left of Mr. Obama. They held another Obama donor event featuring former President Bill Clinton one month before the 2008 election (Mr. Clinton filled in for Vice President Joseph Biden, who had suspended campaigning for a few days after the death of his mother-in-law.)
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Every hair brained scheme has been explored except the obvious! Keep people in their homes. Now the elderly are being forced out into the street! Foreclosing on old folks who banks “sold” predatory loans to in the inflated bubble. Largest class of foreclosures now, people in their 70s? Ludicrous. As an appraiser I am watching city implosion that will result in abject poverty. (Memphis) Predatory lending at its ultimate where minorities were targeted. Banks slurped up massive profits as contractors duped the elderly who owned their homes, on fixed incomes, into refinancing on ARMs/interest only loans that reset and now are losing them by the thousands. Foreclosures up in Memphis. City considering raising both property taxes and sales taxes, which unfairly impact the poor. Many all ages becoming homeless or moving in with relatives.
This is a nightmare and our government, both parties, ignores the plight of these people! They want to bulldoze or wipe the slate clean, start over but that isn’t going to work. There are no buyers, no jobs and no credit. Cash investors purchase and renovate and these also sit vacant. Rent packages sold to out of town investors now sitting vacant. No takers!
When will Washington recognize what the banks have done instead of allowing them to continue to rape the public! Can these people move into a house they own? The White House?
Inventory is down because loans are underwater, not due to sales. Except for the very wealthy most areas suffering major value loss that will never return. Banks are short selling or liquidating in record numbers, selling to investors, cash, pennies on the dollar to buy and hawk houses to unsuspecting Koolaid drinkers who can’t believe they can’t make that ‘million’ in real estate the books tell them anyone can do!
One day we will read in the history books and hear the lying lament, “If we had only known how bad it could turn out. . . “… . and they would have done WHAT?
The “White House” could have done a number of things, but has refused to investigate, prosecute, or hold accountable any Bankster for years. The administration is corrupt.