Why Some Cities are Using Eminent Domain to Save Mortgages

Some cities are fighting back against the mortgage crisis, using eminent domain to seize and write down troubled mortgages, keeping homeowners in their homes and keeping local economies afloat, writes Peter S. Goodman.

Mayors like Sacramento's Angelique Ashby see the mortgage crisis as much more than just a mortgage crisis. In addition to forcing homeowners to abandon ship, bank foreclosures and underwater mortgages are wreaking havoc on many aspects of local communities in a chain of economic reactions, from shrinking tax bases to reduced spending to weak job markets to failing local businesses. All of this has consequences even further down the line, like cutbacks in city departments, shrinking fire and police departments, and on and on.

Ashby - who works in a district where 70% of homeowners are underwater- is asking the City to consider a proposal to use to eminent domain to seize and write down troubled mortgages, helping to keep homeowners in their homes and hopefully stem many of these other issues as well.

Full Story: Eminent Domain As Underwater Mortgages Fix: Why Some Cities Are Considering Unorthodox Measure

Comments

Prepare for the AICP Exam

Join the thousands of students who have utilized the Planetizen AICP* Exam Preparation Class to prepare for the American Planning Association's AICP* exam.
Starting at $245
AICP CTP Storefont Display

The first online AICP* CTP exam prep class

Are you ready to take the AICP* Certified Transportation Planner exam?
Priced at $245 for May exam!

City Coasters

Hand-drawn engraved maps of your favorite neighborhoods are divided up across 4 coasters making each one unique.
$36.00
Red necktie with map of Boston

Tie one on to celebrate your city

Choose from over 20 styles of neckties imprinted with detailed city or transit maps.
$44.95