“From each according to his abilities, to
each according to his needs.”
― Karl Marx
― Karl Marx
The People's Republic of California - Marxist California Democrats are on the march looking to seize the money, the private property, of banks and private individual lenders and re-distribute that wealth to voter home owners. Emphasis on the VOTER part please.
When you rob Peter and give the money to Paul, you will always get Paul's vote.
The Leftist Democrat city of Richmond, California, said on Tuesday it will use its power of eminent domain to seize private property mortgage loans to keep its residents in their homes, becoming the first U.S. municipality to adopt such an approach.
The northern California city sent notice to the holders of more than 620 underwater home mortgages in the city, asking them to sell the loans to the city. It would buy the mortgages for 80 percent of the fair value of the homes, write them down and help the homeowners refinance their mortgages.
In the event the owners of the loans would not cooperate, the city would seize the loans using eminent domain, Mayor Gayle McLaughlin said in the Virginia Gazette.
"Residents here in Richmond have been suffering for years thanks to the housing crisis Wall Street created and which Wall Street refuses to fix," said McLaughlin in a statement.
Numerous groups, including the National Association of Realtors, the American Bankers Association, and the Securities Industry and Financial Markets Association, have already voiced fierce opposition to using the threat of eminent domain to buy mortgages.
"It is very, very discouraging to see a municipality begin the process," Timothy Cameron, managing director and head of SIFMA's Asset Management Group, said in an interview. "What this does is destroys the contractual rights of investors along with their trust and confidence in the capital markets. I wouldn't be surprised if a lawsuit is filed by investors, quite frankly."
Eminent domain is normally used by cities to force the sale of homes if they obstruct the construction of a project deemed beneficial to the wider community, such as a road or bridge.
Richmond is working with San Francisco-based Mortgage Resolution Partners, a private investment firm that has been pitching the plan to U.S. cities and municipalities for more than a year. MRP, raising money from private sources, would work with the city to obtain the financing to buy the distressed mortgages and restructure them. MRP would receive a fee for every troubled loan it restructured under the plan