Wednesday, September 11, 2013

California city backs plan to seize negative equity mortgages - Yahoo! News Canada

California city backs plan to seize negative equity mortgages - Yahoo! News Canada
RICHMOND, Calif (Reuters) - Richmond, California's leaders approved on Wednesday morning a plan for the city to become the first in the nation to acquire mortgages with negative equity in a bid to keep local residents in their homes...Richmond can now invoke eminent domain if trusts for more than 620 delinquent and performing "underwater" mortgages reject offers made by the city to buy the loans at deep discount pegged to their properties' current appraised prices to refinance them and reduce their principal.
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This should set off a firestorm. 

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