Richmond, CA is First to Offer to Buy, or Threaten Eminent Domain to Save Troubled Mortgages
The City of Richmond took a bold stand against Wall Street today becoming the first Nation to offer to buy underwater mortgages from banks and realtors in order to achieve principal reduction for homeowners.
The City would then allow homeowners to pay for what their home is currently worth, not its original value. If the banks and realtors do not take up its offer, the city is prepared to take possession of the property under eminent domain.
Arielle Zionts has more: