"City Council candidate for bankrupt Vallejo floats plan to seize underwater loans, and restructure them to help homeowners and clean up community; program to be presented Wednesday"
2013-07-24 from Katy Miessner [www.KatyForCouncil.com]:
VALLEJO --
A city council candidate for the previously bankrupt California city of Vallejo will unveil a program this week that could use the city's power of eminent domain to seize underwater homes to help besieged Vallejo homeowners and clean up Vallejo's neighborhoods
Candidate Katy Miessner is sponsoring a presentation Wednesday/July 24 (7 p.m. at Bay Terrace Theatre/51 Daniels Avenue in Vallejo) that will outline how the plan would help homeowners in Vallejo.
The program has already been adopted by the city of Richmond and is under consideration by other California cities.
[http://www.sfchronicle.com/bayarea/article/A-rescue-for-Richmond-s-underwater-mortgages-4603273.php]
Under the program, the City of Vallejo would use eminent domain to seize mortgages, and restructure them to allow people to stay in their homes. The City would partner with Mortgage Resolution Partners, a Bay Area company working with municipalities throughout the state on programs to save homes and bolster neighborhoods.
"If there is a sensible way to stop foreclosures, help homeowners save their homes, and at the same time save our neighborhoods from blight while boosting Vallejo home values, then it's something I have an obligation to support," said Ms. Miessner.
Ms. Miessner said the program reduces underwater mortgages to current market values, and allows homeowners to stay in their homes, providing an alternative to those being forced to walk away from underwater loans.
Ms. Miessner said that about 64 percent of the homes in Vallejo are underwater, and nearly nine percent of the owners are delinquent on payments. The 94590 Vallejo zip code is ranked in the top one percent of U.S. homes underwater, and devalued since the mid-2000s.
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