AMI Mythbusting: Don’t Let Your Neighbor Steal From your Retirement; Say No to Eminent Domain
For immediate release
Tuesday, August 6th, 2013
AMI Mythbusting: Don’t Let Your Neighbor Steal From your Retirement;
Say No to Eminent Domain
Washington, D.C. – The Association of Mortgage Investors (AMI) condemns the use of eminent domain as a foreclosure mitigation tool. We further deplore the unconstitutional application of an eminent domain tax on all responsible U.S. homeowners and savers. The mortgages in Richmond, and other communities, represent the investments for the pensions of teachers, firefighters, first-responders’ retirement systems, and private 401K savers.
The U.S. housing market, including Northern California, is experiencing a steady, but fragile recovery. The use of eminent domain in this context is untested, untried, and unconstitutional. Its use is fraught with negative economic consequences for the community.
Recently, a major news organization ran a story about a borrower allegedly in need.
AMI Mythbusters reviewed the facts and published this following analysis:
“MLG, a homeowner pushing for the program in Richmond, is underwater by $300,000 on a home currently valued at just $130,000. Yet he is paying close to $3,000 a month and has a jumbo payment of $190,000 due in 27 years. “I am not a homeowner under a technical definition,” he said. “I will never be able to pay for this home under the current conditions.” His loan originated with a bank but was bundled and sold and is still currently being moved around from servicer to servicer, he said. MLG’s story is similar to others in the community whose loans were sold to pools of private investors and are dubbed private-label security mortgages. The investors who own these loans claim they cannot be modified.”
Thanks to the Contra Costa public records, we are able to tell the story of this homeowner’s mortgage.