Amanda Erickson explains how communities could wield the power of eminent domain to rescue residents with "underwater" mortgages, by condemning homes and allowing owners to refinance their mortgages and pay a new, lower rate.
While U.S. homeowners continue to struggle through the economic recession and maintain their mortgage payments, 14 million of them are making payments on mortgages that are worth more than their home. California-based community advisory company Mortgage Resolution Partners believes they have the answer for these "underwater" homeowners.
Erickson outlines MRP's streamlined process, stating that cities could "condemn 'underwater' homes that meet this criteria. Under the law, they would then pay mortgage holders (the trusts) only the 'market value' of the home, or the value the house is worth today. Then, instead of booting the residents, the city would allow them to refinance their mortgage and pay a new, lower rate."
Questions of legality come into play, but, Erickson writes, the 2005 case of Kelo vs. New London made the utilization of eminent domain for economic development an acceptable action. "At this point, I guess you'd have to say all bets are off in terms of what is and isn't eminent domain," says Columbia University law professor Thomas W. Merrill.
FULL STORY: Can Eminent Domain Solve Our Mortgage Woes?

Maui's Vacation Rental Debate Turns Ugly
Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

Planetizen Federal Action Tracker
A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

In Urban Planning, AI Prompting Could be the New Design Thinking
Creativity has long been key to great urban design. What if we see AI as our new creative partner?

Portland Raises Parking Fees to Pay for Street Maintenance
The city is struggling to bridge a massive budget gap at the Bureau of Transportation, which largely depleted its reserves during the Civd-19 pandemic.

Spokane Mayor Introduces Housing Reforms Package
Mayor Lisa Brown’s proposals include deferring or waiving some development fees to encourage more affordable housing development.

Houston Mayor Kills Another Bike Lane
The mayor rejected a proposed bike lane in the Montrose district in keeping with his pledge to maintain car lanes.
Urban Design for Planners 1: Software Tools
This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.
Planning for Universal Design
Learn the tools for implementing Universal Design in planning regulations.
Gallatin County Department of Planning & Community Development
Heyer Gruel & Associates PA
JM Goldson LLC
City of Camden Redevelopment Agency
City of Astoria
Transportation Research & Education Center (TREC) at Portland State University
Jefferson Parish Government
Camden Redevelopment Agency
City of Claremont