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A growing number of states are taking another look at using eminent domain to seize underwater mortgages.
Now -- the folks losing their home to foreclosure or local government would actually by the mortgage front for the lender and cut the loan principal to match the current property value seeds start paying the local government.
What is it legal with us now attorney -- -- and Fox News legal analyst Lis -- glamorous start with he'll.
You -- the point is that there needs to be a way to force forced the lenders to make decisions.
That are good for them.
Tell me what you mean by that.
You know some of the -- some of these things are atrocity and they can't write these backed by law.
If -- all the traffic can't do it there's got to be a -- and they want to win a lot of cases bright things back.
And and they can't do it on their own so there needs to be a mechanism.
And this just seems like out a way to do it number one the governor the government started this mass and we know that we begin -- -- -- -- -- -- I know a lot of people might friendlies yet now eminent domain at first I kind of just become very clear Ricky I do not like eminent domain I don't like the idea disclosure yes exit poll that's -- -- -- because what it means -- generally the federal government coming in.
And taking your land your property your mall whatever it is.
Because they need to build a road they need to do something they did okay I'll tell you it's the local government that -- to -- -- -- or worse it's even worse than at the local government's gonna run it how we know what that did captain bounces are a local government.
I'm sorry I just don't trust us.
Idea now -- -- I do you think it's interesting because here's what's going on here in the name of trying to help people who are under water.
And I've read that they you know in the local newspapers the editorials where the editorial writers say.
Now look we've got to save these communities because otherwise they're gonna go down the tubes what do you say.
Well -- and they are going down the tubes you know and I I.
You know I've got an example of I had a client that Odom one point five million -- house and -- he tried to settle it with them blender for a million.
Which is the 500 doubt that he already paid the Lander which was everybody breaks even and they start over again.
The lender said no we went into foreclosure the lender lost 250000.
And how set vacant in a community in -- high end community for a year and a half while killed everybody else's property value.
I'm sorry about that and that's horrible but I got got a good deal -- slippery slope argument here which is that we allowed eminent domain which is to be very very rarely used.
In this context than the next time the next time the next time local governments local municipalities are going to use with the federal government has Jesus eminent domain and go -- -- take your stuff.
But at least you got to understand it's going to be supervised by courts you know the government just doesn't get to go in and do what -- they want they're gonna have to set -- I pray I never know what I thought I really realistic in question here -- -- to provide -- by court doesn't make me feel better but.
Let's not real estate so -- -- before that the editorial was saying you know look these these communities are going down the tubes because these people are under water.
Now these particular programs -- it's all being suggested by company called mortgage resolution partners through the people who are selling this idea all over the country.
What they say is you know this will save those people and the communities will be better off.
But how the community is going to be better off to -- When at the end of the day you're still talking about people or having a very difficult time even affording the house how -- they maintain those properties.
Net -- this is not a benefit for the community isn't.
-- absolutely it's a benefit for the community if they write that mortgage backed.
Now these people have flexibility they can sell their house still win and they -- downsize.
The government coming in at a local and municipalities the mean the fact that Matt how the state and taking people stop taking their -- Is that good for the government no they're not taking.
-- are way that you're you're way off and I -- -- both houses.
They're they're no they're taking the mortgage away from the mortgage company -- us they're not taken anybody's how you get this keep your house then their repackaging it.
Dropping it down to where you're not underwater and selling it did to another Morgan -- they're even using the US cellular how eminent domain which is a very frightening thing I think for most people all -- Well I created under -- -- it very frightening and and listen to -- -- thinking it's a homeowner if the government comes and it takes my house I can't think of anything scarier.
But here's to wait here's one of the profits doing here's one of the problems so we have seen a number of federal programs to try to help help out people.
Who are behind on their mortgages who were under water who can't pay who don't want to pay.
They have -- worked.
-- -- a stunning.
Lack of success in that category why would this be any different.
Where it probably won't I'm a free market person myself and I think -- I think free market by the takeover bids but the problem is we haven't gotten way out allowing the free market I have to get -- and now we got to do some things.
We got to do something to help.
You people do we really -- don't think you know you're not the market work its way through.
I mean literally.
You know let's just let love all the foreclosures go and that in -- start another cycle -- the devils started hello we have -- It ends the Albright doesn't but -- quest for -- now let's start it -- Yeah I'm sorry I have -- -- everything I really patient with to -- -- thanks for arguing.
That the pro side on eminent domain on this network I appreciate it against what it's a -- and I know I have to run people who are fans okay utilities to.
Thanks for coming on tonight good to see you.
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