Nevada Locality Latest To Explore Use Of Eminent Domain To Seize Mortgages

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On June 19, the city council of North Las Vegas, Nevada, reportedly voted to explore the potential use of the government’s eminent domain powers to seize underwater mortgages from trusts, write down the loan principal, and re-sell the altered mortgages to new investors. In January, a California county that had threatened such a course voted to abandon the concept. Since then, several other California cities have signed agreements with a third-party to explore the issue, with North Las Vegas now deciding to pursue a similar path. To date, however, no locality has taken the next step to implement a mortgage seizure plan.

Topics:  Eminent Domain, Mortgages

Published In: General Business Updates, Constitutional Law Updates, Consumer Protection Updates, Finance & Banking Updates, Residential Real Estate Updates

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.

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