California City Sets Ultimatum For Eminent Domain Action


On July 29, the California city of Richmond reportedly sent letters to the owners and servicers of the mortgages on 626 homes in the city, informing those entities that if they do not accept the city’s offer to purchase the mortgages, the city will employ its eminent domain powers to seize the mortgages. The city is demanding to buy both current and delinquent loans, and the first pool of 626 loans does not include any homes with large second mortgages. It intends to write down the principal of the purchased mortgages in an effort to avoid additional foreclosures, and then sell the loans to new investors. If the city follows through on its ultimatum, it would be the first locality to use eminent domain in this way. Several other localities have considered or are considering such action, including North Las Vegas, Nevada, which recently announced its intent to assess the potential use of eminent domain.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© BuckleySandler LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.