The New York Communities for Change, formerly known as ACORN, hopes to follow California’s lead and seize underwater mortgages by invoking eminent domain. They would then have their cronies handle the transactions, eventually giving them to people of their choosing.
ACORN is currently attacking the ‘rich’ banks and hinting at the idea of giving the homes to minorities in anticipation of this move. All this will be at taxpayer expense in a grand redistribution scheme.
A meeting on October 15th at the Gordon Heights Civic Association on Long Island was conducted by one Ishraq Ali. The claim made during the meeting is that local legislator, Rob Colarco is ‘warm’ to the idea. The flyer given out refers to people of color communities suffering. Planned Parenthood and other far-left organizations are in support of the idea.
In 2010, the Town of Brookhaven Long Island published the draft of a land use plan that said they would, ‘Work with housing groups like the Long Island Housing Partnership to purchase distressed mortgages and prevent foreclosures.’ This new plan of course goes much further. It is theft, plain and simple. Investors – banks – loan money in good faith. People now want the banks to be responsible for their home’s devalued worth.
To understand how a process like this is done, look to Richmond, California. In Richmond, they are currently moving closer to stealing from banks by invoking Eminent Domain. CNN Money posted an article about it in September. We have also posted information on the issue several times. Richmond is not the only locale doing it.
The plan in Richmond California would allow the government to buy 624 mortgages at current value, leaving investors with the full brunt of the loss of value in the homes. Investors would be forced by the government to turn over the greatly-devalued properties.
One company – Mortgage Resolution Partners (MRP) – run by Steven Gluckstern, is behind the scheme, which leaves open the possibility of corruption. His company would handle the transactions and he stands to benefit from the transactions.
It won’t even help many who receive the homes, who in some cases will be the original owners, because many still will not be able to afford the homes they couldn’t afford in the first place. Taxpayer subsidies will also be part of this type of arrangement.
The potential for another serious housing bubble looms in the background. Also obvious is the fact that banks will no longer give mortgages to communities that enact this type of anti-Capitalist policy without requiring high interest rates or worse, bringing down the value of homes even further.
Wells Fargo sued in Richmond and so far they are losing.
Earlier this week, federal district judge, Charles Breyer, dismissed a lawsuit that was filed by Wells Fargo. It aimed to stop the plan from moving forward. Wells Fargo was serving as the trustee for dozens of investment trusts in the suit. The judge ruled against Wells Fargo though Wells Fargo clearly should not be in this position. The homes are their property.
Make no mistake, if this is allowed, no one’s home is safe from the government. There will always be an excuse for the government to take peoples’ property. This is an attack on the right to ownership of private property.
Gluckstern’s company has targeted homes for as much as $1 million and is claiming it is to help the needy.
The idea of seizing investors’ property for government handling has been a favorite of Mr. Obama’s. The ‘democratic’ solution to solving the problem of home value decreasing is for the government to redistribute investors’ property. We don’t do this in a free society or in a Capitalist society. It is done in Marxist societies.