Does this smack of communism or am I an idiot?

[eoforwic]

http://news.yahoo.com/calif-cities-eye-plan-seize-mortgages-190416716--finance.html

This just doesn't look right. I could probably talk here about so many weird stories (which are true BTW) concerning mortgage fraud, mortgage-saving hair brain ideas, and even supposed federal government-sponsored programs which President Obama sign into law in order to help people save their homes (and which doesn't seem to have been successful). But this news about California--and please don't tell me that California, just like Vegas and Miami are a different world, they are still part of the U.S.--all this in my view doesn't count as "eminent domain" but rather like Communism.

One of the things that Miami Cubans always have complained about is the fact that Fidel Castro took over all private property, and yes, most people have lived in their original homes for the last 53 years--almost rent free--paying what amounts to a ridiculously low fee, but well, you know the rest of the story!

If Bernardino county does this, isn't the government confiscating these properties? And, please if it does look good in the eyes of many, it also looked extremely good in the eyes of at least half of Cuba, back then.

If I'm an idiot, don't simply just say so; tell me how it is I am one!

[egann]

Probably YES to both-
anyone who is not a communist is probably an idiot.

[devon]

I hardly think you should blame the cities for this one. If you read the article, you will discover that this scheme was hatched by a group of Wall Street financiers, not by the cities. The money dudes claim they are just trying to be helpful. You might want to poke that with a stick a few times.

[adelphos]

This isn't communism. This is political grandstanding. Politicians often introduce bills that they hope will never be enacted, but in the meantime, they hope they will be seen as having taken a courageous stand to solve a problem.

[ammi]

I love the idea. I'm under water. I wish the county would seize this piece then sell it back to me at fair market vault. Hellz Yeah.

[valentino]

If I have to pick A or B, I am afraid I have to pick "you are an idiot." This plan (whatever one might think of it) is intended to keep property in the hands of individual private owners, not acquire them for government use. That is the opposite of communism.

[hampton83]

Remember Susan Kelo vrs.The City of New London ,CT that went to the Supreme Court, giving municipalities even stronger rights of eminent domain . The City was luring mega entities into town by marketing the waterfront , many refused to sell their homes for any price , homes overlooking the Thames. http://www.law.cornell.edu/supct/html/04-108.ZS.html
They lured Pfizer to town and wanted major gated communities and condos. They hoped it would raise tax revenue , the City sold out it's residents . The City and State flooded areas with Section 8 folks to easily gain their vote with a song and a dance - vote counting and promises to other parts of the town to protect themselves.
Funny how Pfizer left and it's abandoned now.

[varik]

Remember Susan Kelo vrs.The City of New London ,CT that went to the Supreme Court, giving municipalities even stronger rights of eminent domain . The City was luring mega entities into town by marketing the waterfront , many refused to sell their homes for any price , homes overlooking the Thames. http://www.law.cornell.edu/supct/html/04-108.ZS.html
They lured Pfizer to town and wanted major gated communities and condos. They hoped it would raise tax revenue , the City sold out it's residents . The City and State flooded areas with Section 8 folks to easily gain their vote with a song and a dance - vote counting and promises to other parts of the town to protect themselves.
Funny how Pfizer left and it's abandoned now.

the difference between communism confiscation of property and american eminent domain is that in the american system, fair market value has to be paid and the owner can contest the terms offered to the courts. this has essentially been done in many communities where the government reclaims abandoned homes. the plan in this article is not about abandoned property, but ones that have producing mortgages that are underwater. That is kind of like buying stock, it doesn't matter whether the current market price is up or down, you hold stock for the long term before cashing out. i could see why the investors in these properties would be livid, they invested waiting for the return of an orderly market and not to sell at the lowest possible distress point. I used to live in Ontario, so i can well believe they could be suckered into a scam like this.