Comments on: A solution for underwater mortgages: Eminent domain http://blogs.reuters.com/great-debate/2012/06/19/a-solution-for-underwater-mortgages-eminent-domain/ Thu, 21 Jul 2016 07:57:19 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: paintcan http://blogs.reuters.com/great-debate/2012/06/19/a-solution-for-underwater-mortgages-eminent-domain/#comment-58669 Sat, 11 Aug 2012 17:09:28 +0000 http://blogs.reuters.com/great-debate/?p=13233#comment-58669 Just the fact that private homes are in waste lands in the areas “dbizzness” mentions – even if the abandoned buildings are razed – will mean those survivors will still have little or no market value.

The rules for real estate value in this free market economy have always been “location-location-location”.

The rule is so unremitting – literally – that the wrong side of the street can mean the difference between a going commercial property and a failure. The “wrong people” (defined by snobbery, middle class values and racism) could doom excellent housing stock almost over-night.

We live in an economy that caters to whims, speculation and no foresight and is easily driven by fear (even imaginary ones), and no real planning for the downtime of an economy. Planning Board Master Plans are not really plans – more inventories with suggested locations for ,usually, privately funded land use. They always adopt the fashionable or market driven solutions. Now it is too late to repair the damage due to poor planning. The municipalities – especially suburban areas – want what looks pretty and they think will preserve their real estate values and don’t usually take into consideration fuel costs or pedestrian convenience. Municipal planning boards can also be bribed to do what big developers want.

Real estate has been dominated by speculation for the past 50 years and if it goes down – the speculators flee and forget the rubbish they left behind. It is for the municipalities to clean up the wreckage at the tax payers expense.

Those areas cannot be reclaimed without massive intervention by State and Federal programs that will rebuild the waste lands such, that very skittish private builders and large developers will risk their money on them. The big guys don’t like to take big risks. It’s nonsense to accept a popular notion that large developers or bid business will risk fortunes until they are sure the risks are well understood and as small as possible. They have investors to satisfy and they have to be careful or they will loose their jobs.

If those neighborhoods ever come back, it can only happen if the business that provides employment in the area starts to thrive again. Otherwise it was not built to last forever and will revert to the bare ground. Everything in this country – including private homes – has been built for an economic purpose and it purpose dies so goes the stuff it built. This is the free market ethic that built the physical environment for the past 150 years. The speculative fever was something I never saw so strongly until about 30 years ago.

The populations are also disposable – the planning boards never think about what might happen to the residents if the economies of their area start to whither.

Putting all the Bankers in jail isn’t going to work because they know the law better than their clients. They were following the law and were even trying to figure out the vagueness of it.

BTW – everything you read in newspaper articles doesn’t have to be correct and can even be planted by donations to the editors. What is journalistic ethics today? How do you know if the media has any, anymore?

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By: RenoiraS http://blogs.reuters.com/great-debate/2012/06/19/a-solution-for-underwater-mortgages-eminent-domain/#comment-48469 Sat, 23 Jun 2012 17:17:41 +0000 http://blogs.reuters.com/great-debate/?p=13233#comment-48469 It was reported in March 2010 that B of A had already spent over 2.3 billion on legal fees alone. The banks must pay property taxes on all the properties they take back (not that they are). The community blight from unoccupied housing is staggering.

These facts do not even begin to take into account the countless families and their children that are now homeless.

Most of these families could pay their mortgages at the current market value. It would be in the best interest of the banks as well as communities to modify these loans and ALL properties underwater. The legal fees saved alone could justify the price. This is not communism considering the FBI report that 80% of mortgage fraud was due to collusion and insider trading by investors and insiders.

On May 9th, 2012, Henry Walker, CEO of Farmers and Merchants Bank, stood before the Long Beach committee and stated that these proposed Homeowners Bill of Rights would continue to damage the banking industry?

In reply to that there is an old Supreme Court case; Bigelow v. RKO Radio Pictures, Inc. 317 US 251 (1946) which states that: “The most elementary conceptions of justice and public policy require that the wrongdoer shall bear the risk of the uncertainty which his own wrong has created.”

Please consider that the lenders have put themselves in this position by their irresponsible and fraudulent behavior, yet their economic advantage still gives them room to bully the homebuyers who simply want to live in their homes.

They have foreclosed on homes they do not own. They have foreclosed on homebuyers who did not have mortgages. They have foreclosed on homebuyers who thought they were paying on time, but due to some glitch were behind only $104.00

And while these were obvious wrongs, the cost and emotional stress it cost the homebuyers to correct these wrongs is…again…staggering.

People need to understand….this is not “business as usual” this is blatant, unmitigated fraud and in lieu of thousands of bankers and Wall Street execs in jail there needs to be restitution to the buyers.

This is an excellent plan and should be seriously considered.

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By: dbizzness http://blogs.reuters.com/great-debate/2012/06/19/a-solution-for-underwater-mortgages-eminent-domain/#comment-48285 Fri, 22 Jun 2012 15:34:56 +0000 http://blogs.reuters.com/great-debate/?p=13233#comment-48285 In Ohio, Michigan, and many other parts of the so-called midwestern “rust belt,” the problem is as much the fact that there are 10s of thousands of vacant, abandoned, functionally obsolete homes that are far beyond repair that are littering neighborhoods and weighing down neighboring property values as these empty homes continue to rot, their yards turning to dumps, and the homes become venues for crime and drug activity.

Detroit, Cleveland, Dayton, Cincinnati, Flint, parts of Chicago, Buffalo, Indianapolis, etc…which are all struggling to rebuild in the wake of the foreclosure crisis, will continue to fail in their efforts until they take a step back and tear down the thousands of abandoned, decaying, and never-again-to-be-inhabited homes that are sinking the values of homes that are inhabited, and the viability of neighborhoods that would otherwise benefit from the range of programs and methods that are being attempted to revitalize housing markets in the post-foreclosure crisis era…I recommend those interested in a more viable solution than a gov. “taking” research the efforts of the Western Reserve Land Conservancy’s Thriving Communities Institute in Ohio, (http://www.thrivingcommunities… which has set up quasi-governmental entities called “land banks” that allow for the clearing of title of foreclosed, vacant properties by operation of law so that property can be resold, repurposed, or demolished depending on a case-by-case evaluation of the condition of the home itself, its neighborhood, and the local housing demand.

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By: Tye15 http://blogs.reuters.com/great-debate/2012/06/19/a-solution-for-underwater-mortgages-eminent-domain/#comment-47967 Thu, 21 Jun 2012 15:32:22 +0000 http://blogs.reuters.com/great-debate/?p=13233#comment-47967 This is absolutely brilliant, and I must say the comments about “communism” and “moral hazard” made me laugh out loud. After seeing the taxpayer bail out the stupid bets on Wall Street while bonuses flooding to hedge fund managers, it is clear communism is alive and well for the rich! But the beauty and irony of using the right-wing Kelo decision to actually HELP the little guy is delicious. Since it doesn’t help the banks and big investors (at least directly), I would expect the SupCt would use the obligation of contracts prohibition to squash this fantastic idea, however.

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By: JackVigdor http://blogs.reuters.com/great-debate/2012/06/19/a-solution-for-underwater-mortgages-eminent-domain/#comment-47904 Thu, 21 Jun 2012 12:03:00 +0000 http://blogs.reuters.com/great-debate/?p=13233#comment-47904 The use of eminent domain to take the property of those people in Connecticut for a high end development which never got developed is actually am example of fascism not communism. Communism is when the means of production and ownership is all controlled and owned by the government in the name of the people. Fascism is where a small group of corporation, with close relationships with the government own and control everything (actually, fascism is a mixed economic system with some small ownership, but most large corporation in close relationship with the government.) The land take in the case cited was nt to be used for a community park, a community hospital, a school or even a factory which would supply jobs. It was to be used to build high end luxury housing. Eminent domain has been use in the US to drive individuals off their property to benefit corporations in the name of urban renewal. Both communism and fascism are totalitarian. Under Bush-Cheney ad in those states run by Republican governors, like florida, there has been an effort to privatize prisons, public health services and schools in the name of efficiency and to reduce costs” in actuality that sort of fascist privatization always results in more waste and poor services. Lower wages, and higher profit to some friend of those in government.

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By: datchary http://blogs.reuters.com/great-debate/2012/06/19/a-solution-for-underwater-mortgages-eminent-domain/#comment-47872 Thu, 21 Jun 2012 10:45:37 +0000 http://blogs.reuters.com/great-debate/?p=13233#comment-47872 Sorry to correct you Sarko, but communism has favoured hyperinflation as the most satisfactory means of impoverishing the middle classes historically.

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By: Mithuna_Khon http://blogs.reuters.com/great-debate/2012/06/19/a-solution-for-underwater-mortgages-eminent-domain/#comment-47709 Thu, 21 Jun 2012 00:56:22 +0000 http://blogs.reuters.com/great-debate/?p=13233#comment-47709 Eminent domain taking is for public USE, not public purpose. As someone else said, nice sleight of hand.

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By: GotDOCG http://blogs.reuters.com/great-debate/2012/06/19/a-solution-for-underwater-mortgages-eminent-domain/#comment-47694 Wed, 20 Jun 2012 23:08:10 +0000 http://blogs.reuters.com/great-debate/?p=13233#comment-47694 Another pie in the sky plan… there are over $11 trillion in real estate loans on the books… and well over $2.5 Trillion are now under water… eminent domain on that many loans… will happen right after the Cubs win a World Series… How about a make sense proposal of Mark-To-Market for all such loans, keeping the people in their homes… stabilizing the housing market and enabling the sector once again fuel new jobs…

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By: Andvari http://blogs.reuters.com/great-debate/2012/06/19/a-solution-for-underwater-mortgages-eminent-domain/#comment-47674 Wed, 20 Jun 2012 20:09:25 +0000 http://blogs.reuters.com/great-debate/?p=13233#comment-47674 You never really own property, you’re simply renting it from a government. If you fail to pay your taxes, your property is taken away from you.

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By: silverwolf1977 http://blogs.reuters.com/great-debate/2012/06/19/a-solution-for-underwater-mortgages-eminent-domain/#comment-47654 Wed, 20 Jun 2012 18:36:35 +0000 http://blogs.reuters.com/great-debate/?p=13233#comment-47654 I think eminent domain should be outlawed. Land ownership should be true and absolute.

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