118 - Examining California County's Controversial Proposal To Use Eminent Domain To Provide Relief For Underwater Homeowners
The latest ABI podcast features ABI Executive Director Sam Gerdano talking with former ABI Resident Scholar Prof. Mark Scarberry from the Pepperdine University School of Law about a controversial proposal being considered by a few localities in California to provide relief to underwater homeowners. Officials from San Bernardino County, Calif., along with two other cities are considering a proposal to use eminent domain to reclaim underwater, but performing, mortgages to then rewrite the mortgage and lower the monthly payments. The county would then pay investors what they consider "fair value" for the mortgage. Scarberry, who continues to analyze various approaches to the foreclosure crisis, talks about the proposal and the potential legal ramifications of using eminent domain to provide relief from the foreclosure crisis.