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Chicago Alderman Joe Moreno on efforts to help homeowners with underwater mortgages.
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-- very -- using eminent domain you are forcing the banks into a deal that they don't wanna be in.
Eminent domain -- is the use of that force there is a market -- -- to address this were these mortgages that are not performing.
Can be sold at a discount and do exactly what you see you're doing -- by injects a welcoming in caucus.
Don't tell me where that's happening -- tell me where that's happened just simply telling these -- it's this not happening I don't.
-- -- -- there's this third biggest city in the country air partners with -- accord they have a whole business that is actually doing third -- City of Chicago -- in my city my -- the third biggest city it's not happening.
And so I would say is that let's look at this that the Supreme Court ruled that this is a legal practice now I'm still looking into that but there's no doubt.
But -- morality.
And there's financial benefit for working class families at looking at a solution like this I'm still intrigued and researching the legal side of this.
But I'm not gonna stop because some bureaucrats either we get weak kneed Democrats.
Or right -- Republicans in DC are gonna try to fix the solutions that I have on Damon avenue on western avenue and my war.
Our that there are lots -- that think this is unconstitutional.
If you go around tearing up contracts.
It undermines the entire system banks are gonna want -- land in the future and the people that testified yesterday our hearing that said it was unconstitutional.
Are -- holders of that.
On the Wall Street folks that got us into this mess I hear your point you know -- -- right whenever I write you and all this video camera they actually might say otherwise now they are though if I want to choose from two different companies one's gonna both are gonna profit are two different entities.
I'm gonna choose the one that are gonna help families -- principled stand their homes over Wall Street folks that have -- we're William and have you can't Wall Street near -- I mean he's here -- bank is he's the guy and I -- -- this whole problem in the first place he pioneered the sub prime mortgage these exact people that you're talking about he's now into one -- is -- at one individual may listen.
-- defend him.
I'm not gonna defend him.
I don't care of that firm does it or not we're getting away from the issue this is a unique idea.
It's been on it it is being constitution -- up cities in California -- our head of us on this Chicago's still debating this I'm still debating this internally.
But what I have to look at.
As -- -- of my -- are solutions to keep families in their homes.
-- -- current battle -- -- let's let's -- let's remember this.
A deal occurred or how it will probably get -- and they're currently paying your mortgage why -- you inject shirt off in this situation.
Good question because than the 90% of homes that are gonna go to for closer over the next three to six months.
Our families that are current that are fifty to 60% underwater and we've if we're not gonna act and -- Should their current you said they're paying their bills that they're in their house they're paying their -- what's the problem let's say you know this come I'm Melissa you know this you know I don't temporary business degree from there okay.
So they have a term on their on their on their on their -- on their mortgage right so five your eight year twelve year term when that turned -- up.
Guests -- -- thirty guess what they -- you know this is is basic economics so when those terms come up they're not gonna be able to refinance for the 200000 dollars of their homes worth now they're gonna have to refinance for the 44 -- -- suppose they were six years ago.
What happens foreclosure so that's what we're trying to prevent I'm trying to prevent empty homes and vacant lots of my -- not have more of them.
What their current -- payment you're looking all the way down the road near assuming that the bank isn't going to make a deal with and keep them.
In the house do you think banks really Imus -- on people I mean it's EU unfortunately I raised a pain in my neck for them.
They wanna keep people in their house paying their bill why are you assuming that down the rugby field we're totally and I are gonna not -- stop paying.
They -- I notice you're cutting out assuming you don't get seven cheaper mortgage that if they sit and they don't pay their bill that the government's gonna come to the rescue that's why you're undermining this whole system.
I'm not assuming anything I know.
I've met with chase I've met with Bank of America I've met with Wells Fargo I've still heard the lip service they are not interest data and renegotiating.
Mortgages.
Yes they don't particular don't just -- million and they foreclosed on how they lose money banks do Melissa want to foreclose on -- house.
Next door and then -- next quarter my.
Home next door to my personal home as a million dollar home that was boarded up for nine point.
One year and nine months for almost two years the banks have no.
Interest and he's gone why would -- -- the person who bought it who couldn't afford it.
I mean at what the baseball.
What why is -- they've got what we don't have to go over the last 45 years on this why does my family why does -- Rigas family the Jones -- not get a day off from the federal government but all your friends on Wall Street did that's a better question I'm adding I'm I'm.
I'm my -- I can.
I'm Morgan I'm sure act -- reacting to the situation that your friends on Wall Street critic not the families that live in my ward so is selling sinuous and it's AA and it's.
And it's and it's wrong you're just factually wrong that is a problem with the homeowners you -- -- the bags and up the base that loaded so I'm sorry I just disagree.
Actually on that Melissa passionately that's -- this segment it's called disagree with me -- I do appreciate your time I appreciate your passion I appreciate your opinion thanks for coming on tonight.
Thank you have -- on.
