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Eminent domain is the power of the state to take private property for public use with payment of compensation to the owner.

Eminent Domain

Many municipalities across the nation are using eminent domain to seize underwater mortgages from banks when homeowners are in default or foreclosure.

Below you will find the All Client Alerts (ACAs) relating to eminent domain. Please check back frequently for updates. 
 

2015

On August 7, LOCALTALKNEWS.COM released an article titled Panel Pushes City Eminent Domain in Newark "Foreclosure Crisis".

On May 27, the Glens Falls Post-Star published an article titled City to use eminent domain to pressure banks to clean up foreclosure properties.

On February 5, Bloomberg published an article titled San Francisco Controller's Report Discourages Eminent Domain Use.

On January 12, Commonwealth Magazine released an article titled Eminent Domain for Mortgages.


2014

On December 17, the Mortgage Bankers Association (MBA) released an MBAlert titled At MBA's Urging, Federal Action Taken on Eminent Domain Mortgage Seizure Proposal.

On December 12, National Mortgage News published an article titled Spending Bill Bans FHA from Financing Eminent Domain Loans. 

On December 7, Bloomberg published an article titled San Francisco Debates Eminent Domain for Mortgages:  Muni Credit.

On October 6, the San Francisco Examiner released an editorial titled Mortgage-seizure idea:  A solution in search of a problem?

On June 25, HousingWire published an article titled Is Eminent Domain Coming to New York City?

On June 16, American Banker published an article titled Eminent Domain Mortgage Seizures Down But Not Out.

On May 8, CBS reported on a story titled UC Berkeley Study Looks At Underwater Mortgage Problem, Supports Richmond’s Eminent Domain Plan.

On February 13, National Mortgage News published an article titled HUD Looks to the Courts for Guidance on Eminent Domain.

On January 28, Inside Mortgage Finance published an article titled CEO Departs Firm Backing Use of Eminent Domain; Time for Wall Street to Declare Victory?

On January 22, Housingwire published an article titled ABS Vegas Panel: Eminent domain is 'Stealing.'

On January 16, National Mortgage News published an article titled Fear of Eminent Domain Threat Tops Agenda of MBS Executives.


2013

On December 23, Huffington Post published a blog titled Our Most Powerful Weapon Against Wall Street?  The Reverse Eminent Domain Movement.

On December 18, ABC Local News published an article titled Richmond City Council Votes for Foreclosure Prevention Plan.

On December 8, SFGate published an article titled Richmond Mortgage Eminent Domain Battle Expanding.

On December 5, National Mortgage News published an article titled Newark Advances Eminent Domain Plan to Slow Foreclosures.

On December 5, nj.com published an article titled N.J. ACLU, Others Sue Federal Agency in Brewing Eminent Domain Controversy.

On December 2, HousingWire published an article titled Senators Warn HUD, Treasury About Lingering Eminent Domain Proposals.

On December 2, DSNews published an article titled Eminent Domain Takes Root in Areas with High Unemployment, Poverty.

On November 25, The Baltimore Sun published an article titled Some Call on City to Explore Eminent Domain to Combat Blight.

On November 20, East Bay Express published an article titled Fearing Wall Street Reprisals, Oakland Council Abandons Anti-Foreclosure Plans.

On November 18, HousingWire published an article titled Eminent Domain Proposals Spread in Hardest-Hit Communities.

On November 15, The New York Times published an article titled More Cities Consider Using Eminent Domain to Halt Foreclosures.

On November 5, the Mortgage Bankers Association (MBA) published an artilce titled Eminent Domain Battle Shifts to Another California City.

On October 17, National Mortgage News published an article titled Bondholders Appeal California Eminent-Domain Case Dismissal.

On September 21, The Washington Post published a blog titled Is Richmond’s Mortgage Seizure Scheme Even Legal?

On September 20, Mortgage Daily published an article titled The Players in Richmond's Eminent Domain Plan: Video of Interviews.

On September 17, Bloomberg.com published an article titled California Mortgage Grabs Are a Terrible Idea.

On September 17, MortgageOrb published an article titled Bondholders' Suit Over Eminent Domain Is Dismissed.

On September 16, SFGate published an article titled Banks' Eminent Domain Suit Against Richmond Tossed.

On September 15, the Las Vegas Sun published an article titled Lawsuit over CA City’s Mortgage Scheme Premature.

On September 11, the Mortgage Bankers Association (MBA) released an update titled ALTA Statement Further Clarifies Eminent Domain Debate.

On September 11, MortgageOrb.com published an article titled Richmond Moves Forward With Eminent Domain Plan.

On September 11, the Mortgage Bankers Association (MBA) released an alert titled Richmond, CA Holds Meeting on Eminent Domain Mortgage Seizure Proposal, While Other West Coast Cities Review Proposal Logistics.

On September 9, MortgageOrb.com published an article titled Nevada City Rejects Eminent Domain Proposal.

On September 3, the Las Vegas Review-Journal published an article titled North Las Vegas Won't Release Opinions on Controversial Eminent Domain Plan.

On August 29, the San Francisco Chronicle published an article titled Eminent Domain Plan May Have Spooked Investors.

On August 26, Bloomberg.com published an article titled Eminent Domain Scheme Has a Tax Problem.

On August 20, San Francisco Chronicle published an article titled Pricey Homes in Richmond's Eminent Domain Plan.

On August 15, CBS SF Bay Area released a report titled Richmond Demands Wells Fargo Drop Lawsuit Over Eminent Domain Mortgage Plan.

On August 14, National Mortgage News published an article titled HUD Stays Clear of Eminent Domain Debate.

On August 14, MortgageOrb published an article titled Seize The Day - Or The Mortgage.

On August 14, HousingWire published an article titled HUD Doubts Eminent Domain Strategy.

On August 12, USA TODAY published a column titled Richmond, Calif., Runs Amok with Eminent Domain: Column.

On August 12, MortgageOrb published an article titled FHFA Stiffens Its Stance On Eminent Domain.

On August 8, DSNews published an article titled FHFA Calls Eminent Domain 'Threat' to GSEs, May Consider Legal Action.

On August 6, National Mortgage News published an article titled Eminent Domain Seen Unlikely in California City.

On August 2, abcNews published an article titled Richmond, Calif. Eminent Domain Proponents, Critics: Q&A.

On July 30, Reuters published an article titled California City Becomes First to Adopt Eminent Domain Plan.

On July 30, National Mortgage News published an article titled Richmond Moves First on Eminent Domain.

On July 28, NJ.com published an article titled Eminent Domain May Find New Use to Salvage Urban Homes.

On July 26, the Boston Business Journal published an article titled Mass. Mortgage Bankers to Congress: Drop Eminent Domain as Mortgage Fix.

On July 22, Mortgage Daily published an article titled Eminent Domain Bill Re-Introduced.

On July 19, HousingWire published an article titled Lost in the Desert: Proponents of Eminent Domain Cause a Political Stir in N. Las Vegas.

On July 17, National Mortgage News published an article titled Loan Seizure Plan Finds New Life.

On July 14, HousingWire published an article titled Congressman Tries to Tackle Eminent Domain Plans.

On July 2, The Wall Street Journal published an article titled Fighting Foreclosures With Eminent Domain.

On July 1, HousingWire published an article titled North Las Vegas Eminent Domain Proposal Faces Pushback from Homeowner.

On June 28, HousingWire published an article titled Fight over Eminent Domain Continues Unabated.

On June 20, Reuters published an article titled The Housing Proposal that won’t Die.

On June 11, DSNews.com published an article titled Fed Report Proposes Use of Eminent Domain for Underwater Mortgages.

On June 10, HousingWire published an article titled Mortgage Investors Raise Alarm as Eminent Domain Spreads.

On May 17, National Mortgage News published an article titled FHA Considering Policy on Eminent Domain.

On May 12, the Daily Bulletin published an article titled Pomona to Hear Eminent Domain Proposal.

On April 23, The Review published an article titled Village Committee Discusses Building Inspection Plans.

On April 19, njspotlight.com published an article titled Walkaways by Banks Run Up Number of Vacant Homes.

On March 22, Enterprisenews.com published an article titled Lawyers Debate Brockton's Foreclosure Strategy.

On February 21, Duane Morris LLP & Affiliates published an alert titled N.J. Superior Court Finds That Condemning Authority is Not Required to Negotiate With Mortgagee Prior to Initiation of Eminent Domain Action.

On January 24, the MBA published an article titled San Bernardino County JPA Declines Eminent Domain Proposals.

On January 3, The Boston Globe published an article titled Brockton Considers Plan to Seize Bad Mortgages.

 

2012

On October 25, Housingwire.com published an article titled Eminent Domain -- Now in the Past Tense?

On October 12, MBA President and CEO David H. Stevens published a member letter highlighting the events and attendees of the Eminent Domain Symposium held in September.

On September 27, the National League of Cities (NLC) published an article titled High Stakes for Cities and Towns in Eminent Domain Showdown.

In September, the MBA, along with other industry groups, turned to Congress to prevent eminent domain from being invoked to seize underwater mortgages.

On September 13, the MBA released a letter stating that Congressman John Campbell (R-CA) introduced his eminent domain bill, Defending American Taxpayers from Abusive Government Takings Act, in the U.S. House of Representatives.

On September 7, several national, state, and local groups joined in sending a letter to the FHFA, expressing continuing concern about potentially harmful effects the use of eminent domain would have on local economies and housing markets.

On September 5, HousingWire released an article titled San Bernardino Housing Market Improves without Eminent Domain.

In a September article, American Banker discusses the comment letter Mortgage Resolution Partners submitted to the FHFA following its requests for comment on the eminent domain proposals.

On August 24, American Banker discusses possible legal challenges to utilizing eminent domain to seize underwater mortgages as a result of state law prohibiting local governments from taking property and conveying it to a private company.

In an August 14 article, the Chicago Tribune discusses remarks made by Mayor Rahm Emanuel regarding eminent domain as it was being discussed in City Council.

On August 8, the FHFA issued a press release titled FHFA Sends Notice to Federal Register on Use of Eminent Domain to Restructure Performing Loans.

In August, the cities of Berkeley, Sacramento and Elk Grove are now considering utilizing eminent domain, following recent actions from San Bernardino County CA  and Chicago.

DailyCal.org reported in August that the Berkeley City Council has expressed interest in assisting local homeowners facing foreclosure by using a historically unpopular tactic.

In a July posting to Cities Speak, James Brooks from the Community Development and Infrastructure Center for Research and Innovation discusses California’s Homeowner Bill of Rights legislation and the proposed eminent domain actions in California.

On July 25, the City of Chicago City Council heard a resolution calling for a "hearing concerning the implementation of a program under which the City of Chicago would acquire underwater mortgages through eminent domain."

In July, unincorporated San Bernardino County and the cities of Fontana and Ontario, CA are considering “using the power of eminent domain--not to take control of the house itself, but to take control of the mortgage instead.

 

2006

A New York Times article discusses efforts by legislatures across the country to combat the Supreme Court ruling in Kelo v. City of New London upholding the authority of the City of New London to condemn homes in an aging neighborhood to make way for a private development of offices, condominiums, and a hotel.

 

2005

Kelo vs. New London was tried in the U.S. Supreme Court.

Resources

Please click here for the Mortgage Bankers Association's (MBA's) Resource Center on Eminent Domain Use for Mortgage Property Seizures.




About Safeguard

Safeguard Properties is the largest mortgage field services company in the U.S. Founded in 1990 by Robert Klein and based in Valley View, Ohio, the company inspects and maintains defaulted and foreclosed properties for mortgage servicers, lenders,  and other financial institutions. Safeguard employs approximately 1,700 people, in addition to a network of thousands of contractors nationally. Website: www.safeguardproperties.com.

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