We really do get the government we deserve, don’t we? People are so freaking retarded that they don’t understand what half of these legal tenets mean, but they SOUND good!
/johnny
I don't know what the mortgagees are howling about. They should not be losing a dime. If the city wants to seize a mortgage to avoid forceclosure, then they should pay every dime with interst that is owed. But I suspect they are not.
Even if they are, the city (government) has no right to do this. The article mention lawsuits, which is the correct response to this "Eminent Domain". I hope this idea fails.
That is the intent. Destroy the 'private securities' market, so that only banks and 'approved' lenders can invest in mortgages...........
Ayn Rand had it right. :
"Needless to say, under either system [socialism or fascism], the inequalities of income and standard of living are greater than anything possible under a free economy -- and a man’s position is determined, not by his productive ability and achievement, but by political pull and force. Under both systems, sacrifice is invoked as a magic, omnipotent solution in any crisis -- and “the public good” is the altar on which victims are immolated."
Cities who are contemplating this should heed the cautionary tale of the Genesee Towers in Flint, Mich.
The tallest building in Flint, it was left mostly vacant when NBD, successor to Genesee Bank, again merged and pulled out of it’s former headquarters. Some Indian fellow from Oakland County bought the 19 story building for $500K. He did not keep up on the maintenance, and within a few years large chunks of concrete began falling to the pavement below.
Faced with a public safety hazard, the city of Flint took the building via eminent domain and paid the guy $500K. “But wait a minute,” he said, “you have me assessed at $5 million!” The case wound it’s way all the way up to the Michigan Supreme Court, which agreed with him and ordered the City of Flint to pay him $5 million, which the city did not have.
Everybody got a supplemental tax bill to pay off the “Genesee Towers Assessment”. The building was beyond repair and was brought down via controlled demolition just before Christmas.
Localities out there could easily end up in a similar situation with these mortgage holders.
All property (and money, of course) rightfully belongs to the government.
How is this legal? Loans are paper--seizing the mortgages and then claiming ownership of the property, and then giving away the seized property is rather indirect. And, redistribution of physical property to bankrupts is not a compelling common interest. The mortgagors never really owned the property--they were renting it from the lienholders (banks).
Russia’s kleptocracy is a piker-version of ours.
If cities can use eminent domain to take underwater mortgages, couldn’t they use eminent domain to take unsustainable public employee pension rights?
First it was to build sidewalks, or to widen the streets. Then to build schools and roads. Then as a favor to private developers (who rewarded the politicians).
Now its for whatever the government wants to do. No private property is safe.
Communist manifesto: all private property must be seized by the government. (not the exact words)
Such actions would freeze the private money lenders and those who cannot get money at the normal banks, etc, would be losing their homes—10% of the market, according to this article.
Meanwhile, a local ‘real estate’ TV show had information that Hedge Funds are buying up properties that are being short-saled. One such hedge fund bought 30 properties in the last 2 months in Sacramento alone.
I am assuming such homes will be cleaned up & RENTED for income until the market gets some sort of recovery and then the house will be sold for another profit.
For totally broke municipalities to be taking over homes that are underwater isn’t the answer. Maybe the cities should form their own hedge funds to do this action.