Chicago considers eminent domain to seize underwater mortgages

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One of the more shocking allegations they put forth in court documents is that many of the targeted 624 loans are not even underwater. If enacted, the city of Richmond would use its powers of eminent.

The pot is starting to bubble on proposed use of eminent domain. seize the mortgages of private home loans that are underwater. U.S. Rep. John Campbell, R-Calif., introduced federal legislation.

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Brockton is exploring using eminent domain powers to seize bad mortgage loans that. Brockton has 7,000 homeowners currently “underwater,” or living in homes that are valued below their mortgages,

Houses across the country are underwater, and San Bernardino County is trying something new: eminent domain. The county would use its power to seize mortgages and restructure them.

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The proposal from a member of San Francisco’s Board of Supervisors would use eminent domain to take over loans on property with a market value below the mortgage amount. as well as in Chicago and.

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Several other municipalities, notably Chicago, have considered using eminent domain to seize underwater mortgages but have stopped short of putting the plan in motion. Mortgage Resolution Partners.

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Abandons Eminent Domain Mortgage Plan" Alejandro Lazo, LA Times, January 24, 2013, www.latimes.com. Recent other cities reported to be considering the plan are Chicago, Illinois and Brockton, Massachusetts. See "Chicago Considers Eminent Domain to Seize Underwater Mortgages" Jon Prior, Housing Wire, July 7, 2012,

Cities and towns with the financial backing of a private investment fund propose the use of eminent domain to seize current but underwater mortgages held in mortgage. communities (San Bernardino,

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