Industry News
December 18, 2012
Eminent Domain for Mortgages Meets Opposition
The drive by Mortgage Resolution Partners to promote local government’s use of eminent domain to seize performing mortgages and negotiate principal reductions may be nearing its end in the face of a slowly improving housing market, a nationwide settlement with housing lenders, and growing opposition. It was recently reported that if the plan doesn’t gain traction in the first half of 2013 then the plan sponsor may reevaluate its continued viability. San Bernardino County was one of the first communities to seriously consider the plan but so far no local government has actually approved seizing mortgages using eminent domain. The CLTA has been a critic of the plan from the very beginning and joined with other groups in opposing efforts to adopt the concept in California.
