It’s brilliant! Citizens may finally have a weapon to fight the financial industry shysters. County and city governments are considering the use of eminent domain to seize mortgages and then help owners in those communities refinance their homes at fair market value.
Eminent domain is normally used by local governments to seize property needed for highways, infrastructure, and other public works that are projected to benefit the greater community. Seizing mortgages is a slight twist on the process but, in the same vein, it is being considered for the purpose of ensuring the long term viability and prosperity of local communities.
No doubt the financial industry is all fired up and worried. They’re pursuing a full court press to quiet and scare local politicians who are trying to help their constituents. Lenders know that if this sticks, there will be an avalanche and their recklessly conjured house of cards will come crashing down. Mortgage lenders (banks) and their special interests are threatening litigation and using fear tactics such as promising wholesale leading boycotts of communities.
Lt. Governor Gavin Newsom has stepped up to the plate and is trying to give local governments a fair opportunity by publicly calling on the SIFMA (finance industry special interest) to “cease making threats to the local officials…We must think big and help our local governments develop solutions — because the industry and federal government have not.” He sent a letter to U.S. Attorney General, Eric Holder, asking federal prosecutors to investigate any attempts by Wall Street investors and government agencies to “boycott” California communities that are considering such moves.
The financial industry must view eminent domain mortgage seizer as a legitimate “fight back” strategy because they are responding ferociously. There are a handful of cities and counties across the nation considering this idea and we should do our best to support them.
Wall Street and the financial community rewrote the laws that govern their industry and within eight short years crashed the global economy. They then pressured their Washington buddies for a bailout and came out of the mess bigger and more powerful. Home owners were left with devalued assets while the banks were allowed to keep receivable notes at the original high value.
The eminent domain strategy proposed by local governments could be the great equalizer. Spread the word, it’s brilliant!