California city tries new tack in foreclosure plan

(eastbaymodern.com)
(eastbaymodern.com)
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Updated: 1/13 1:19 pm

RICHMOND, Calif. (AP) — A Northern California city hit hard by the housing crisis is trying a new strategy in its plan to use its powers of eminent domain to stave off foreclosures.

The Sacramento Bee reports Monday that officials in Richmond who support the plan are looking to partner with other communities in a joint powers authority. The move would require only a simple majority of council votes and could broaden Richmond's initiative to other cities in California or even in other states.

Members of the Richmond City Council have been unable to muster the supermajority of votes needed to approve the eminent domain plan. The program would seize private mortgages in danger of default and then lower the amount homeowners owe.

Opponents argue the eminent domain plan would disrupt the country's mortgage industry.

©2014 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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