Mortgage Services Company Suggests Using Eminent Domain To Fix Underwater Home Loans
A big portion of the nation's mortgages are underwater, meaning more is owed on the loan than the house is really worth. However, a Cali...
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A big portion of the nation's mortgages are underwater, meaning more is owed on the loan than the house is really worth. However, a California company has a novel repair in mind, which requires local governments using the power of eminent domain to push a refinance.
Is it secure to use eminent domain?
"Eminent domain" is a government power allowing the government to seize land for any reason as long as it is for "public good." It would be considered detrimental to public welfare to do otherwise typically. During this process, the land owner is compensated by the government. This is one power that federal, state and local government authorities have access too, and it is very questionable.
A lot of people think that eminent domain is an abuse of power and should not be allowed, although it is generally used to put in highway extensions and other things, according to NJ.com. There was one landowner who had 1-acre of land taken with eminent domain by the city of Hoboken. Even though the land was valued at $10 million, they only gave him $2.3 million, and the land was being used to put in a park.
Concept to use it well
Reuters explained that one good concept came from California-based business Mortgage Resolution Partners. The concept would help get rid of the mortgage loans individuals have by using eminent domain. Normally, the home is recognized as "condemned" when this takes place, but MRP wants it to occur with the loans instead.
Millions of homeowners are underwater. CoreLogic estimates 22 percent of the nation's mortgages are underwater; Zillow, according to CNN, estimates 31.4 percent of the country's houses are in negative equity. MRP's concept, according to Reuters, is to get private investors to invest the funds needed to seize the loan and pay the bank that owns seized properties a fair market price, which would be lower than the purchase price, for the deeds to said properties. The loans would then be restructured by MRP for a fee and sold to brand new investors, lowering payments for the mortgage borrower.
Government authorities in California would simply need to turn in the eminent domain paperwork. No taxpayer money would be used for it since investors would fund it.
Just a suggestion for now
MRP has taken the proposal to a lot of local governments in California already, and many people liked the idea a lot since California could really use a pick-me-up. The Hesperia Star explained that even though 50 percent of homeowners in the city are underwater on their mortgages, the city council already turned the bill down.
In spite of the fact that a lot of people are underwater, a ton of them are still paying on their payments, according to CNN. The Zillow survey showed that 90 percent of underwater home owners are still making payments regularly. It is extremely dangerous for a homeowner to own more than the home is worth because they could end up in foreclosure.
Article source: visit nowadays https://personalmoneynetwork.com/
Is it secure to use eminent domain?
"Eminent domain" is a government power allowing the government to seize land for any reason as long as it is for "public good." It would be considered detrimental to public welfare to do otherwise typically. During this process, the land owner is compensated by the government. This is one power that federal, state and local government authorities have access too, and it is very questionable.
A lot of people think that eminent domain is an abuse of power and should not be allowed, although it is generally used to put in highway extensions and other things, according to NJ.com. There was one landowner who had 1-acre of land taken with eminent domain by the city of Hoboken. Even though the land was valued at $10 million, they only gave him $2.3 million, and the land was being used to put in a park.
Concept to use it well
Reuters explained that one good concept came from California-based business Mortgage Resolution Partners. The concept would help get rid of the mortgage loans individuals have by using eminent domain. Normally, the home is recognized as "condemned" when this takes place, but MRP wants it to occur with the loans instead.
Millions of homeowners are underwater. CoreLogic estimates 22 percent of the nation's mortgages are underwater; Zillow, according to CNN, estimates 31.4 percent of the country's houses are in negative equity. MRP's concept, according to Reuters, is to get private investors to invest the funds needed to seize the loan and pay the bank that owns seized properties a fair market price, which would be lower than the purchase price, for the deeds to said properties. The loans would then be restructured by MRP for a fee and sold to brand new investors, lowering payments for the mortgage borrower.
Government authorities in California would simply need to turn in the eminent domain paperwork. No taxpayer money would be used for it since investors would fund it.
Just a suggestion for now
MRP has taken the proposal to a lot of local governments in California already, and many people liked the idea a lot since California could really use a pick-me-up. The Hesperia Star explained that even though 50 percent of homeowners in the city are underwater on their mortgages, the city council already turned the bill down.
In spite of the fact that a lot of people are underwater, a ton of them are still paying on their payments, according to CNN. The Zillow survey showed that 90 percent of underwater home owners are still making payments regularly. It is extremely dangerous for a homeowner to own more than the home is worth because they could end up in foreclosure.
Article source: visit nowadays https://personalmoneynetwork.com/
