Chicago, IL- On Tuesday, Chicago Mayor said that eminent domain wasn’t the right solution to address the foreclosure crisis as city aldermen gathered to gathered to consider a proposal introduced by a California investment firm.
The idea of using eminent domain was first floated in San Bernardino, California, but has been taken up in several other municipalities. Under the proposal, cities would seize underwater homes and refinance mortgage loans so the payments are more affordable. The funding for refinancing would come from a California-based Mortgage Resolution Partners.
Speaking to the reporters at an unrelated event, Emmanuel said, “I don’t think this is the right way to address the problem. I think there are other places to do it. I don’t think it’s the power of the city to do, to deal with the housing situation. We have a national issue. I think we have to address the issue. I just don’t think this is the right instrument,” according to the Chicago Tribune.
Others agree with Emmanuel, Timothy Cameron, managing director of SIFMA Assets Management Group, which represents 30 asset managers, firms and banks said using eminent domain would affect the ability of potential homeowners to obtain loans.
Many different proposals have been introduced to stem the tide of foreclosures. In many instances foreclosure attorneys can help homeowners find alternatives to losing their homes. Housing counseling, loan modifications and short sales are all effective ways to keep a lender from seizing a home.