Eminent domain plan targets mega mortgages
An uncomfortable truth is emerging in Richmond, Calif., as the municipality pursues the use of eminent domain to seize underwater mortgages. The truth is one of the mortgages they want to purchase has a balance of $1.12 million, The Wall Street Journal reports. Such a hefty price tag could complicate the process.
The WSJ revealed another disturbing truth:
The second largest loan the city would purchase has a balance of $962,307 and the third, $888,361.
The hefty price tag for some of these loans could complicate the argument made by Richmond city officials that they need to seize the mortgages to help homeowners who owe more than their homes are worth, putting them at risk of foreclosure.