Jul 31

Eminent Domain to Seize Mortgages?

Eminent Domain to Seize Mortgages?

Another City Weighs Eminent Domain to Seize Mortgages

Another City Weighs Eminent Domain to Seize Mortgages

Chicago is the latest city to join a growing list of cities and counties across the country that are considering using Eminent Domain in order to seize underwater mortgages.

The controversial idea of using Eminent Domain first surfaced in San Bernardino County, Calif. A west coast capital firm, Mortgage Resolution Partners, is trying to get more counties and cities across the country signed up to the idea, which they argue is a way to decrease the number of foreclosures and prevent home values from falling any further.

If cities use Eminent Domain in this sense, they would be able to seize mortgages that are in negative equity and then use investor money to reduce the mortgage principal for the home owner. They’d also be able to help refinance the home owner’s loan into a government-backed loan, according to Mortgage Resolution Partners’ proposal.

Chicago will consider an eminent domain measure at a hearing this week, but city council members have already said that the idea has cleared legal standards. In Chicago’s Cook County area, more than 44 percent of homes are underwater—meaning home owners owe more on their mortgage than their home is currently worth.

“In the coming weeks and months we expect more municipalities to announce their intent to explore the use of eminent domain to seize underwater mortgages,” Isaac Boltansky, a policy analyst for Compass Point, told HousingWire.

HousingWire cites critics who argue that such a program would cause mortgage bonds backed by jumbo loans to see losses increase more than 30 percent. Some in the real estate community also have spoken out against eminent domain proposals to take over mortgages in recent weeks, questioning the legality and suggesting that it violates property rights.

Source: “Chicago Considers Eminent Domain to Seize Underwater Mortgages,” HousingWire (July 27, 2012)

admin

For all of your Real Estate needs, place yourself in the competent hands of a career Realtor who is a Philadelphia native and Delaware County resident. Skilled, smart and enthusiastic about his work and his life, Anthony DiDonato has the appealing combination of business sense and people skills gives him an edge in an industry that demands both.

Educated at Drexel University with a dual major in accounting and finance and minors in management and psychology Anthony DiDonato offers over 25 years of experience in the real estate industry. He has been a real estate investor since 1985 and a member of H.A.P.C.O. (Landlord Association). He became a licensed Realtor in 1992 and a member of the Local, Pennsylvania and National Associations of Realtors. Anthony DiDonato is also a member of the Computerized Multiple Listings, (MLS) and Internet Marketing Programs. In 1997 Anthony DiDonato became Century 21 All-Elite, Inc. Corporate Secretary.

Anthony DiDonato believes in taking his profession to the highest level of quality service. He is known for finding that “perfect” property in Philadelphia, Delaware County, Chester County, Montgomery County and surrounding areas in Pennsylvania for his buyers and helping his sellers prepare their properties so they sell quickly and efficiently.

When it comes time to negotiate the terms of a contract, Anthony DiDonato has the knowledge, experience, and professionalism applied to meeting – or exceeding – his clients’ expectations. His service to his clients is second to none. His honesty and integrity have been his claim to fame.

For Superior Real Estate Representation in the Delaware Valley, Philadelphia, Delaware County, Chester County, Montgomery County and surrounding areas in Pennsylvania… call Anthony DiDonato.