Tag Archives: Underwater Mortgages

Condeming Underwater Mortgages: Another Look at the Legality of It

OK, I’ll admit it.  A year ago I thought this whole condemnation-of-underwater-mortgages thing would die off pretty quickly.  I predicted we’d never see any large-scale condemnation effort.  So far, I’ve missed badly on the first prediction — but it remains to be seen whether I’m right on the second one. To date (unless I’ve missed something), … Continue Reading

Federal Court Halts Lender Underwater Mortgages Lawsuit Against Richmond

Yesterday, the City of Richmond caught a small reprieve with respect to its plan to condemn underwater mortgages.  As reported by Reuters, the federal district court ruled that the lawsuit filed by lenders Wells Fargo, Deutsche Bank and The Bank of New York Mellon is unripe. The judge denied the lenders’ request for an injunction to halt the … Continue Reading

The City of Richmond Remains Undeterred in its Quest to Condemn Underwater Mortgages

Despite three major banks filing federal lawsuits against the City of Richmond last month related to its plan to condemn underwater mortgages, the City continues to press on.  On Tuesday, the City voted 4-3 to continue its partnership with Mortgage Resolution Partners (MRP), the mastermind behind the scheme. (See articles from The Press Enterprise and Contra Costa Times.)   The council and … Continue Reading

Update: Condemnation of Underwater Mortgages Closer to Reality

It’s been a while since we focused on the whole condemnation of underwater mortgages scheme but that doesn’t mean the idea has died off.  To the contrary, apparently at least four California cities have now signed advisory agreements with Mortgage Resolution Partners.  According to the Las Vegas Sun and various other news outlets (see here and here), the … Continue Reading

Stanislaus County Moving Forward with Claribel Road Project

After two years of negotiating with residential property owners, the Stanislaus County Board of Supervisors approved acquisition of the property by eminent domain.  The Modesto Bee reports that the board approved the acquisition of a single-family residence at its meeting on Tuesday in order to construct its Claribel Road project, which will cost the county $15.2 … Continue Reading

More Reports on San Bernardino’s Decision to Abandon Underwater Mortgage Eminent Domain Plan

Given how much publicity the proposal to condemn underwater mortgages received when it first appeared last summer, I suppose it’s not surprising that San Bernardino’s decision last week not to move forward has also garnered a lot of attention.  Still, it’s been hard to keep up with the many articles on the subject these past few days. … Continue Reading
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