Article

2012-08-20 Economy

Chicago to use Eminent Domain to Seize Underwater Mortgages

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Posted by Besoeker 2012-08-20 07:47|| || Front Page|| [11128 views ] Top

#1 > boost a recovery of the housing market.

The market IS recovering when houses get more affordable!!

Posted by Bright Pebbles 2012-08-20 09:35|| 2012-08-20 09:35|| Front Page Top

#2 I'd look at political connections between those using taxpayers money to keep big land speculators afloat.

Posted by Bright Pebbles 2012-08-20 09:36|| 2012-08-20 09:36|| Front Page Top

#3 Chicago has no money to pay for anything, but underwater mortgages have no value, so they don't need to pay anything for them. It's just a bookkeeping move, taking the debit off the mortgage lenders' books and putting it on the taxpayers books. The banks ought to be paying Chicago to take the mortgages.

Posted by Glenmore 2012-08-20 10:51|| 2012-08-20 10:51|| Front Page Top

#4 When the federal government forces lending agencies into bad practices, sub prime loans, then when it all goes bad does nothing, our local government will act. The sub prime debacle drove prices out the roof. This all needs a reset, it will happen from city to city until the market stabilizes.

The bank threats of not lending in that community is mute. They can't loan 200percent for a house. The local gov will garentee the loan and the houses will again sell. This not much different from taking an abandoned home from the bank.

I wish they would do it in Phoenix....

Posted by 49 pan 2012-08-20 10:52|| 2012-08-20 10:52|| Front Page Top

#5 There is a genuine problem. House prices were pushed up too high with cheap money, and there is no good mechanism to bring those prices back down.

So long as prices are too high, the market won't recover. Right now the only options are foreclosure, short sale (which the bank has to approve), wait for inflation to catch up or just walk away. All far less than ideal.

Using Kelo to fix it doesn't sit right. Two wrongs don't make a right. I would look instead to the bankruptcy code where the mortgage industry slipped in some language that protects their industry specifically.

Posted by Iblis 2012-08-20 10:53|| 2012-08-20 10:53|| Front Page Top

#6 It would be better to play by the books at the county treasurers' offices to sheriff sale anyone delinquent beyond a 180 days. However, we're talking Chicago.

Too many people with jobs in the offices who are there by patronage rather than skill.

Meanwhile the banks and paper holding institutions are sitting on their hands waiting for the Treasury/Fed induced inflation to get their books floated back to par.
Too many people looking the other way in the office.
Too many of the people with 'connections' would probably be caught up in the process.
Too many of the 'special interests' groups would probably be caught up in the process.

Posted by Procopius2k 2012-08-20 11:10|| 2012-08-20 11:10|| Front Page Top

#7 ...oops, the Meanwhile line should have been at the end of the rant.

Posted by Procopius2k 2012-08-20 11:11|| 2012-08-20 11:11|| Front Page Top

#8 by what legal principle does Chicago ED these properties if the tax payments are current? They have legal mortgages that are just higher in value owed than the property is worth.

Posted by Frank G 2012-08-20 11:40|| 2012-08-20 11:40|| Front Page Top

#9 ..Kelo

That Justice Kennedy court decision that turned upside down the concept of private property.

Posted by Procopius2k 2012-08-20 11:51|| 2012-08-20 11:51|| Front Page Top

#10 If the bank owed the taxes they'd sell and the market would clear.

Posted by Bright Pebbles 2012-08-20 12:01|| 2012-08-20 12:01|| Front Page Top

#11 Da Mare (that's "the mayor" for those who don't speak Chicagoese) recently said he was against the idea, so I wouldn't put much stock in it. Not that I wold be surprised if they did it.

Posted by Spot 2012-08-20 13:11|| 2012-08-20 13:11|| Front Page Top

#12 Frank,
I think they are using the rule on abandoned property for this. I believe SanBernardino is doing this as well. We have a ton of abandoned houses in Phoenix. They are turning into crack houses and the crime is growing.

Posted by 49 Pan 2012-08-20 14:46|| 2012-08-20 14:46|| Front Page Top

#13 So does this mean we can use Kelo to assume control of California, kick out all the illegals and liberals and rewrite the entire state's laws?

Posted by Silentbrick - Schlumberger Squishy Mud Division 2012-08-20 16:39|| 2012-08-20 16:39|| Front Page Top

#14 Might be a good time for a franchise to come in and buy up a lot of property for a sports arena or stadium. Normally I would approve of a city buying up such land and making parks or whatever but if the city is broke that's just foolishness.

Posted by rjschwarz 2012-08-20 19:49|| 2012-08-20 19:49|| Front Page Top

#15 The more Buildings, Homes + Lands the Gubbermint controls, the more Assets it can claim as its own + thus the more it can borrow so that Politicos can once again engage in glorious excessive pork or deficit spending.

D *** NG IT, EXCESSIVELY HIGH DEBT-TO-GDP RATIOS ALA JAPAN + GREECE, ETC. ISN'T GOING TO BE ACHIEVED BY ITSELF, YA KNOW!

Posted by JosephMendiola 2012-08-20 22:46|| 2012-08-20 22:46|| Front Page Top

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