Posted by Congressman John Campbell at 7:03 am on Sep 14, 2012 Comments Off on California’s Eminent Domain Heist
It will not surprise anyone reading this that serious problems
persist in the housing sector. Many solutions have been proposed,
including several pieces of legislation I have introduced in
Congress, to help homeowners, completely reform our housing finance
system and fix the housing crisis. Most of the proposals out there
are focused on struggling homeowners trying to make the next
payment and are about the greater good of the country. However, you
may or may not be surprised that a couple of California cities have
decided to not waste a good crisis, to paraphrase the now infamous
axiom, realizing there is a lot of cash to be made off underwater
homeowners.
In an astonishingly expansive and untenable interpretation of
eminent domain authority, several local governments, notably San
Bernardino, have proposed plans to override private property rights
through a scheme that is specifically designed to make money for
over-leveraged cities. This scheme is being sold as assistance for
hurting homeowners, but it is purely a ploy to use federal tax
dollars to seize distressed home loans and force unconventional,
yet profitable loan modifications.
However, not only will… Read More