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EMINENT DOMAIN ABUSE THREATENS THE MORTGAGE INDUSTRY
Back when San Bernardino made headlines by considering the seizure of “underwater” mortgages under the expanded eminent domain powers ratified by the notorious Kelo decision at the Supreme Court, I had a feeling this bad idea would be going national.
The Wall Street Journal reported on Thursday that, indeed, “Cities from San Bernardino to Chicago are contemplating this land grab that would seize certain mortgages, write down their principal value, impose losses on the holders of those mortgage securities, and then hand them off to another private company to repackage at a profit.”
This is nothing less than theft. The government would be seizing property – in this case, financial property, rather than physical real estate – from its lawful owners, forcibly altering the value of the property according to political imperatives, and giving it to different private interests for their own profit. That’s precisely what Justice Sandra Day O’Connor warned would happen, in her dissent from the Kelo decision.
dba...vagabond trader
August 10th, 2012
Going one step further, what is to stop them from seizing mortgages on any property they want for their sustainable living green schemes.
What a frikkin mess. Thanks again to the 52%ers.
Honest Politicians 4 Sale
August 10th, 2012
Eminent domain started out as a way for the government to build interstate highways, and for city expansion. Now it is just the Ace up the sleeve of greedy lawyers.
Tortillapete
August 10th, 2012
Take the right to vote away from anyone who defaults on their mortgage and you’ll see this crap go away in one election cycle…I am tired of floating deadbeats, and I’ m not alone…
venturaguy
August 10th, 2012
So how can this be constitutional? My home value depreciated like everyone else but because I did not refinance wantonly I am not underwater – why are the deadbeats in our society being rewarded?
Buffalobob
August 11th, 2012
Can you say General Motors bond holders, Delphi non union pension beneficiaries.
Roscoe P. Soultrane
August 11th, 2012
@venturaguy: “why are the deadbeats in our society being rewarded?”
Same principle as the East India Trading Company: if you aren’t smart enough to steal *from* the company, you aren’t smart enough to steal *for* the company.