Can State or Local Governments Use Eminent Domain to Seize Underwater Mortgages? Will They Try?
February 18, 2013 12:40pm - 2:00pm
Used primarily by governments or its agents to expropriate private property for public use with payment of compensation, some municipalities are now considering utilizing eminent domain to seize underwater mortgages of hard-pressed home owners. While this initiative is gaining momentum at the local level, it's facing some tough opposition from the financial services industry. Appellate expert Donald Falk explore the legal and political issues surrounding this proposed application of eminent domain, and what it means for the legal, banking, and real estate industries.