The courts have interpreted the 14th Amendment of the U.S. Constitution (1868) to give the government far more “eminent domain” power than was originally intended. Under the rubric of “eminent domain,” various zoning regulations, land use regulations by the Bureau of Land Management, property taxes, and “environmental” excuses, private property rights have become very diluted. Private property is seized almost every day in this country under the “forfeiture” provisions of the RICO statutes and the so-called War on Drugs..
NOW WE CAN ADD THE DESTRUCTION OF SECURITIZATION MARKETS THROUGH THEFT OF PROPERTY AS AN INAPPROPRIATE USE OF EMINENT DOMAIN.
I reported about this issue when San Bernadino, California began investigating it and I posted again when our own local county supervisor said he’d look into it.
It’s Marxism under the benevolent guise of saving underwater homeowners.
It is clearly redistribution of wealth.
The idea is that the government will use eminent domain to seize underwater homes, declare them derelict, thereby lowering their value. They then turn the “derelict” homes over to Mortgage Resolution Partners, who will work for a flat fee per house, and who will then sell the properties at a greatly reduced price.
The lenders who gave these loans in good conscience would now take the entire hit for the mortgage collapse and the taxpayer would get to pay the fee to the shady people at Mortgage Resolution Partners.
I know people like to blame Wall Street but if a person took a loan out and agreed to that payment, why should they now be freed from paying for it? Why do lenders have to have their property stolen from them and why do taxpayers have to pay the Resolution Partners? It won’t solve the problem.
What bank will give a mortgage after this? Some small lenders will collapse under the loss.
This is UN-American. It is anti-capitalism. It fits well with Marxist philosophy. It is a complete misuse of eminent domain. If we allow this, what next? Private property is a sacred American right and we cannot allow the government to seize properties as an excuse to steal money from lenders.
If the government can use eminent domain with such a twisted interpretation, what next? Maybe the government will take your home next because it fits in with yet another scheme they are working.
Once you open this Marxist door, it won’t be shut easily.
This plot does absolutely nothing about the issue of lost home value. It will actually lower the value of homes near the condemned and seized home.
It will damage, perhaps destroy, the securitization market and you can forget getting mortgages unless you have a huge down payment. Trust and confidence will nosedive. Nothing good can come of this.
Americans have lost 40% of their net worth in the last 5 years, largely because of the drop in home prices. That is the problem that needs to be dealt with. How do we change the downward spiral of the economy and housing market? This scheme doesn’t do it.
Read the story at The Hill