Law360, New York (October 03, 2012, 2:20 PM ET) -- The latest developments in the fight over the use of eminent domain to seize underwater mortgages in California and elsewhere have important implications for lenders nationwide.
The debate over the use of eminent domain for this purpose stems from plans raised by some municipalities to take title to underwater mortgages secured by real property within their jurisdictions and to pay the mortgage holders “fair market value” as the just compensation required by the Fifth Amendment of the U.S. Constitution.
Municipalities and private investors would then issue...
Mortgage Seizure Plans: The Fight Continues
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