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Chicago Alderman Joe Moreno on why the city is considering using eminent domain to seize underwater mortgages in an effort to boost a recovery of the ...
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One of the first to tell you about being usual tactic of using eminent domain misuse mortgages underwater homes in San Bernardino -- county California now.
In the turning into somewhat of a trend with a number of other cities considering the move the most recent.
And the biggest is actually Chicago and I is threatening to undermine whole system here to disagree with me Chicago.
Joseph Marino John thank you have mr.
-- thanks for coming on we appreciate your time.
Thank you Melissa thanks -- so if you sees these mortgages from the banks and you just rip them up why would a bank ever lend money to -- again.
I think we have to go to pretense that these.
Do that local officials like myself I'm on all -- in the city of Chicago.
We have to deal with these issues on the -- Melissa.
I don't have the luxury to be in Washington DC and pontificating about what we should do about that the crisis that we have -- our neighborhoods I live next order these people it's my responsibility.
To deal with these issues and we have a up.
Why do you only -- on -- I hear you I'm standing here on your ground zero so this crisis and you see your name right but hurting -- you think this is the answer.
Law I'll put this way.
We haven't gotten any other answers from the banking industry and the Wall Street folks we have got nothing but push back.
We've tried to work with them we've had the banks in for hearings in Chicago.
We have got nothing in fact we've gotten the opposite.
We passed an ordinance last fall that required the banks to register the home when -- when foreclosure and not wait for the two year process.
We required them to keep that the long clean not beautiful but clean and boarded up and safe and secure.
If they don't do that they face a fine you know what the response is Melissa.
They're not suing the city of Chicago for that ordinance I was frustrated I Christiana target of this particular problems -- clear why it's moved right on why they certainly can't let's move -- topic so that background is very is essential.
To me really considering supporting something like this and I have -- that I would get but I'm very intrigued and this is why because the lack of effort on that and that I just as bribes.
Makes makes local governments look at creative.
And dumb new solutions and this is definitely that -- we.
It's clearly not tells about the solution that -- I don't show you know -- CEO mortgage resolution partners this is the company that's encouraging you to do what's his name is Graham Williams used to work for -- yesterday.
Yet he's one of the American -- of sub prime lending he's one of the guys that invented a system that started this problem in the first place sure and he's trying to convince you to seize these properties.
And allows -- to profit off them again and have a second bite at the -- there are plenty of other funds -- sort.
That want to go out and buy underperforming mortgages like the ones that are there from the banks.
And then see which perform resell them have the market level out.
But he's he's -- to take advantage of this and get -- essentially you know almost for free by taking them from the banks you know that.
Again I met the gentleman yesterday -- met his firm yesterday questioned his firm yesterday for four hours on that and the back.
That you know I'm not I'm not interest today in in working with someone to create the process.
And I'm not saying I'm tied to 1 company but I am very -- -- the fact that we -- principal reduction I -- -- disagree that I -- -- you talk about this -- -- -- -- that agrees with me.
-- -- that many economists agree with there is no way that we can solve these problems from Washington without looking at -- And -- -- -- reduction I don't know wiping out millions more.
While mortgage holder who who -- in the markets in the first place -- in the future.
That they did wrong never gonna issue another mortgage get why would -- what they can just haven't -- -- -- -- If you let me respond -- you're wrong and we're not we're not wiping out.
We're not wiping out the DI the complete -- and Tom the walk away.
We're asking for fair market value -- eminent domain they then get paid on that by investors and then that principle can be reduced in some cases 5060%.
To where the market is today so working family and my org can stay in the home and I can have a safe and secure home and that's the evidence of this Melissa I'm still very intrigued by but I've got I'm more than happy to listen to your solutions for this to listen to Wall Street solutions -- this -- -- the banks solutions that.
But I finally got anything I first three -- so.
