Stop Collective Punishment Over Eminent Domain Use
This petition had 76 supporters
The US government and the Obama administration via The Federal Housing Finance Agency are threatening to cut off all mortgages for the city of Richmond, California, if it uses eminent domain to regain and retain foreclosed homes for families.
According to the Free Legal Dictionary at: http://legal-dictionary.thefreedictionary.com/eminent+domain
Eminent Domain is defined as: The power to take private property for public use by a state, municipality, or private person or corporation authorized to exercise functions of public character, following the payment of just compensation to the owner of that property
According to the Los Angeles Times:
The salvo from the Federal Housing Finance Agency came Thursday, on the heels of a lawsuit directed by major Wall Street firms and U.S.-sponsored mortgage giants Fannie Mae and Freddie Mac against the Bay Area city of Richmond.
Richmond is the first to push forward with the plan, also being debated in cities across the state and nation. Richmond wants to require lenders and investors to sell underwater mortgages at a deep discount. The city would then refinance borrowers into more-affordable mortgages.
The federal housing agency, which regulates Fannie and Freddie, on Thursday made clear it doesn't intend to let this happen. The agency said it would instruct Fannie and Freddie to "limit, restrict or cease business activities" in any jurisdiction using eminent domain to seize mortgages.
The strategy of the city of Richmond is being considered by cities around the nation as a way to get for closed homes back to their owners. The city would seize the foreclosed homes, or those nearing foreclosure, through eminent domain and resell them to the residents at current market value through a third party lender. Eminent domain is often used to displace residents to build sports stadiums, housing developments for multi-millionaires and more recently big oil companies have been using it to seize land to lay pipelines against the protest of the land owners. The Obama administration is siding with the big banks.
We demand that the right of Eminent Domain be allowed to be used to benefit the people of the United States to allow people to regain their foreclosed homes. If it can be done in Richmond, it can be done everywhere.
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