California cities consider seizing mortgages

[JBond]

We are from the government and we are here to help...Good luck

So instead of allowing things to run their course after values went crazy and busted because of government actions...The fix is to now steal those properties and sell them at a loss to the taxpayer to their friends/co-conspirators.

Eminent domain allows a government to forcibly acquire property that is then reused in a way considered good for the public-new housing, roads, shopping centers and the like. Owners of the properties are entitled to compensation, which is usually determined by a court.

A handful of local officials in California who say the housing bust is a public blight on their cities may invoke their eminent-domain powers to restructure mortgages...

But instead of tearing down property, California's San Bernardino County and two of its largest cities, Ontario and Fontana, want to put eminent domain to a highly unorthodox use to keep people in their homes.

The municipalities, about 45 minutes east of Los Angeles, would acquire underwater mortgages from investors and cut the loan principal to match the current property value. Then, they would resell the reduced mortgages to new investors.

Read more: http://www.foxnews.com/politics/2012...#ixzz1zkvWXce4

[zrinkill]

They have to figure out a way to pay for the illegals rent.

[ThaBigP]

So many problems with this, where to begin?

First, this is for underwater mortgages, not delinquent mortages. So imagine being underwater but doing the responsible thing and keeping your payments current. Insult to injury is the city seizes the home under ID and resells it (perhaps to you at a reduced price, as they claim, but is there any guarantee? It is a government "promise" after all) Second, shaky banks are supposed to absorb these losses? One of the ways the banks have stayed afloat is by not marking-to-market the real value of the home as compared to its notational value on their books. Sure it's cooking the books (the whole damn thing is book-cooked, from the Fed all the way down to the banks, and the government to boot). HOWEVER, to force the banks to take these losses on their books by forcing it through seizure yanks a whole bunch of cards from the house built from them. Or is the difference to be made up by California, who is broke? How about the cities, then, who are filing for bankruptcy?

http://www.zerohedge.com/news/next-i...eminent-domain

[ThaBigP]

I would seriously love to see a break-down of the chain-of-custody of the title to these homes if/when the process is formalized (a hedge fund is mentioned as being involved). I want to see how many grubby paws will be raking it in charging "fees" for pushing paper around, or how much "over market" they will be reselling the homes they only previously crammed down to market via the police power of the state. I.E. "This mortgage is for 200k, but the home is only worth 150k, so we're forcing you to sell to me for a 50k loss with a gun to your head" ... then turn around and force the current resident to accept a new 175k mortgage as a condition for staying in the same home; they save 25k and you pocket 25k for having connections.

[ThaBigP]

BINGO! Just what I was looking for ... and just as I suspected.

[VTA]

BINGO! Just what I was looking for ... and just as I suspected.

That is fucked up beyond all recognition. How long before our 'homeland defense' is rounding up protestors when those dopes finally wake up and actually protest?

[ThaBigP]

That is fucked up beyond all recognition. How long before our 'homeland defense' is rounding up protestors when those dopes finally wake up and actually protest?

Any time they want...

http://info.publicintelligence.net/U...urbanceOps.pdf

http://info.publicintelligence.net/U...settlement.pdf