Wednesday, August 1, 2012

Alderman wants to explore fighting foreclosures with eminent domain

From Crain's Chicago Real Estate:
Under a controversial plan pitched by a San Francisco-based investment firm, municipalities and counties would use their eminent domain authority to buy up mortgages that are “underwater,” or exceed the value of the homes securing them. The governments would then reduce the principal owed on the loans and sell them to private investors.

Officials in Southern California and in New York already are considering the idea. Now, Chicago Ald. Edward Burke (14th) wants a joint committee to convene by mid-August to consider whether the city should pursue such tactics.

“This is something that's starting to percolate in all major cities around the country,” said Mr. Burke, the powerful chair of the council's Committee on Finance. “I'd like Chicago to be the first if it's beneficial.”

Mr. Burke and Ald. Carrie Austin (34th) introduced a resolution at the City Council meeting last week calling for a hearing on the matter. A spokeswoman for Mayor Rahm Emanuel said the mayor's office is reviewing the resolution.
Do you think this is a good idea?

Hat-tip Curbed Chicago.

1 comment:

  1. If Burke wants it, it's a Bad Idea! And Austin is probably cluelessly naive.

    Alderman Burke is the most sinister character in City Council. TRUST NOTHING Burke supports!

    Note: I DO NOT have enough info to make a complete observation. Actually, there isn't enough info in any articles on this subject.
    However, I see this as RIPE with Corruption and Destruction!

    Are ALL homes that are "underwater" subject to the eminent domain?
    Do people whose homes are targeted with eminent domain have any recourse?
    When these homes are taken over, who gets them? New buyers? The people who already live there?

    Worst case scenario:
    This eminent domain strategy is used only on homes in BLACK Communities. The end result is either Blacks being forced to rent (thus crippling the ability of passing on Legacy Wealth and/or building Middle Class Black Wealth) or Blacks being forced out of the city borders (and who cares about them after that).

    This is something that should be made public. The fact that it is not should tell you something evil is brewing.

    Once again, if someone has more info on this subject, please post it.

    For now:
    Find out the details!
    Alert the media for a complete examination!
    Contact your Alderman! Unless a full explanation is given (along with airtight legal assurances that protect homeowners), tell your Alderman to not approve it! PERIOD!

    Until then, we all know the conversation that's being held at City Hall:
    Alderman Burke (and/or Mayor Emanuel), "We're using Eminent Domain on troubled homes. Vote to approve this strategy!"
    The Black Aldermen give their STANDARD answer, "Yesm! Weez dews what weez towed!"


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