Eminent Domain Threat May Force Banking Practices Into Full View

By: Saturday August 10, 2013 9:06 am

The city of Richmond, California, is faced with a mountain of homes where the owners are seriously underwater in their mortgages. The banks and investors who hold the mortgages have refused to adjust the terms of the loans in any meaningful way, and Richmond is worried that a wave of either foreclosures or walkaways will result in Richmond becoming Detroit West. Their solution: they want to buy the loans and then rework the terms for the owners to something more realistic. The banks, as you might guess, don’t want to sell.

Richmond is threatening to invoke eminent domain, to force the sale, and the banks are filing suits to block this. But the banks ought to be careful about what they are wishing for. Why? I’ll give you the answer in a single word . . .

 

Tech Bytes, Monday January 28

By: Monday January 28, 2013 2:05 pm

Welcome to Data Privacy Day! To celebrate the fact that, well, we don’t have very much….

BofA Settlement Attempts Broad Waiver of Chain of Title Issues

By: Friday July 1, 2011 9:08 am

Plenty of smart people have weighed in on the Bank of America settlement with investors on $424 billion worth of mortgage backed securities. BofA will provide up to $14 billion in the settlement – $8.5 billion in cash, another $5.5 billion potentially in the next quarter – which they claim will cover all of the RMBS issued by Countrywide (they admit that Countrywide was the worst deal they ever made).

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