Richmond, California is broke
anyway.
It narrowly avoided being pushed into federal bankruptcy court (through a major cutback in city services, etc.).
Where it thinks it can get the $$$$ all of a sudden to buy up 600 defaulted deadbeat non-paying loans in its mostly-slum neighborhoods
AND pay all the litigation costs (plus pay for its defense when taxpayer suits are filed)
?????????
This is 95% BS
They want to buy the loans, not the houses, for "fair market value". We can presume since they will dictate what that is, it will be about a $1 each. They will then seize the property and distribute it out to community organizers to use in building their fiefdoms.
I live across the bay for richmond over in Marin.
Richmond might be our OWN detroit!
I can imagine the legal system Grinding to a Halt behind all this !
It doesn’t say they are deadbeat.
What it says is that the loans are underwater.
And what the city is proposing is to take these loans from the banks, and pay the banks LESS than what the loans are for, and LESS than what the houses are worth.
So essentially, they are proposing to steal the right to foreclose from the banks, for less money than what the banks may have gotten if they foreclosed and sold the property.
Once the city does this, they will have performing mortgages that will, over time, pay the city back more in principle than the city put in. It could be a money-maker. And it is easy to make money if you can force someone to sell you something for less than it’s value.
What i don’t understand is how they would get away with this, because even in the dreadful Supreme Court Kelo case, the SC still upheld the rule that the government had to pay the full market value for the property.