Eminent Domian in a new light

[Truthmatters]

Governments mull radical solution to underwater mortgages: seize them - Economy Watch

 

[CrusaderFrank]

Wow.

Just

Fucking Wow

Turn out the lights at that point the country is over

 

[California Girl]

Eminent domain is an outrageous overreach by government.

 

[Full-Auto]

Wow.

Just

Fucking Wow

Turn out the lights at that point the country is over

It has already started......................Beginning to hear radio spots...........

 

[Truthmatters]

So its going down pretty sour on the right huh?


Can you explain exactly why its bad in this situation or is it in any situation you dislike eminent domain?

 

[Katzndogz]

Wow.

Just

Fucking Wow

Turn out the lights at that point the country is over

Especially since seizing the homes will be limited to those who are making their payments. Conditions for seizure are that all mortgage payments be current. The home will be seized and the property rented out, supposedly to the former homeowner, but that's not guaranteed. The former homeowner will stand in the same shoes as anyone else filling out a rental application with full diversity rules to be applied. Once the home is seized, the lender gets pennies on the dollar, but the homeowner gets zip. He had no equity interest since the home is worth less than what is owed.

My son was absolutely sweating this one out. He has no problem making his mortgage payments and never cared what the FMV of the house was. He was living there and intended to live there for a good many years. The idea that he could lose it and lose everything in the process scared his family to death. They would end up with no money and no home. However, we all pulled together, remodeled the kitchen, put new pavers in the patio and the home inched up to being worth $35,000 more than he owes so he's safe at least for now.

 

[CrusaderFrank]

So its going down pretty sour on the right huh?


Can you explain exactly why its bad in this situation or is it in any situation you dislike eminent domain?

Do you know what you're talking about? Can you tell us in your own words what is proposed?

 

[Oddball]

Governments mull radical solution to underwater mortgages: seize them - Economy Watch

 

[blastoff]

So its going down pretty sour on the right huh?


Can you explain exactly why its bad in this situation or is it in any situation you dislike eminent domain?

Do you know what you're talking about? Can you tell us in your own words what is proposed?

Crusader...You're joking, right?

 

[California Girl]

So its going down pretty sour on the right huh?


Can you explain exactly why its bad in this situation or is it in any situation you dislike eminent domain?

I really don't agree with it in any situation, regardless. Sometimes, freedom is hard. Sometimes, it means fighting against something that is in your best interests. That is where I part company from many conservatives and liberals. You put your own interests above that of freedom, and the 'general welfare' of our nation... I don't.

 

[Ernie S.]

Governments mull radical solution to underwater mortgages: seize them - Economy Watch

Joe's endorsement is all TDM needs.

 

[The Infidel]

So its going down pretty sour on the right huh?


Can you explain exactly why its bad in this situation or is it in any situation you dislike eminent domain?

How about you explain exactly why you think it is a good thing.... its your freeking thread!

Defend it if you think you have the gibblets

 

[Mad Scientist]

If the mortgages were bundled and sold as securities (as the article states) who owns the Titles?

Smells like the Banks wanna dump a HUGE MESS they made on someone else.

 

[Katzndogz]

If the mortgages were bundled and sold as securities (as the article states) who owns the Titles?

Smells like the Banks wanna dump a HUGE MESS they made on someone else.

Then you don't understand how this works.

These aren't bad debts. The only properties available to be taken by eminent domain under these circumstances are those who are not in default. The properties are simply worth less than the loan balance. The borrowers are still making the payments. The banks are happy with the borrowers making the payments. Under these eminent domain proceedings, the state would seize the property and the loan and sell it to a new lender. The old lender would either get nothing or pennies. The homeowner who might have a significant investment in the home gets nothing because there is no equity interest. Eminent domain requires only payment of fair market value but there isn't any. The home is underwater. The state would make money off of every property seized and sold.

The new owner would then rent out the property. Theoretically the old purchaser would be the renter but that's not guaranteed. The rental value of the property could easily exceed the ability of the former owner to pay. It would then be rented to someone else leaving the occupants out on the street. Theoretically the new owner would hold these properties until the value rose when they would be sold at the fair market value on that day. Perhaps to the former owner who is now the renter or to someone else if they do not qualify. It would be next to impossible for older people to stay in their homes. Those homes, if left alone, would have been paid for by the time the state released them for sale had they not been seized in the first place.

The real damage is that under these rules no lender would lend in an area that had this practice. A mortgage would become illusory. The day after a loan was written for $300,000 an assessor could value the property at $200,000 and the state seizes it under eminent domain paying the lender $50,000. No one would even buy property in such a place where they could lose their down payment money the same way.

 

[CrusaderFrank]

And you can thank Souter and the Libs for Kelo v New London for it getting this far

 

[Katzndogz]

And you can thank Souter and the Libs for Kelo v New London for it getting this far

Yes indeed. That is exactly where it started.