Nevada City Rejects Eminent Domain Plan for Mortgages

September 4, 2013
Reuters 
mortgage lending news

North Las Vegas officials have voted unanimously to scrap a proposal that would have allowed the city to purchase underwater mortgages and refinance them into better terms for the borrowers. The use of eminent domain -- which allows governments to seize private property for a public good -- was deemed unnecessary in light of growing appreciation in the North Las Vegas home market.

The plan had been pitched by Mortgage Resolution Partners (MRP), which also had pursued, unsuccessfully, similar action in several California jurisdictions -- most recently, the city of Richmond. In Las Vegas, City Councilman Wade Wagner verbalized the council's doubts about the MRP proposal. "They want the performing mortgages they assume will default in two, three, four years down the road," he explained. "That's a mighty big assumption with property values climbing."










Abstract News © Copyright 2008-2013 INFORMATION, INC.
Powered by Information, Inc.

Stay Updated

Join the fight against predatory lending. Enter your e-mail to sign up for breaking news, action alerts, and CRL's original research.

   Please leave this field empty
  

Help Us End Predatory Lending

Predatory lending destroys family wealth, and preys on our most vulnerable communities. You can help us end abusive lending practices by donating to CRL, or by sharing our work with others.



`