Banks and city officials in Richmond, Calif., continue battling over a local plan to use eminent domain to seize and refinance underwater mortgages. City officials want to use eminent domain to obtain 624 mortgages which the city (population 103,000) has deemed as in danger of foreclosure, which they argue would result in a slide in property values and neighborhood stability.
Richmond City Council voted 4-3 on Tuesday to move forward with the plan, according to accounts in the local media, but conceded to state law which requires a super majority to support each eminent domain move.
Thus, the Richmond plan remains in limbo. Other communities in California and Nevada have raised the possibility in the past of using eminent domain in this way, but backed off in the face of strong opposition from mortgage originators and Realtors. NAFCU and other trade groups also have spoken out against the idea.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
- Exclusive discounts on ALM and CU Times events.
- Access to other award-winning ALM websites including Law.com and GlobeSt.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
