California Town Moves Ahead With Eminent Domain

Geo Beats
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The town of Richmond, located in the San Francisco Bay Area of Northern California had a city council meeting to decide if they will use eminent domain to protect homeowners from paying mortgages higher than the fair market value of their homes. The council members voted 4 to 3 in favor of using eminent domain.

The town of Richmond, located in the San Francisco Bay Area of Northern California had a city council meeting to decide if they will use eminent domain to seize mortgages that have a higher balance than the current fair market value of the homes.

The council members voted 4 to 3 in favor of using eminent domain, which is usually called upon for building roads or commercial structures like malls.

The town will pay for the properties with the help of an advisory firm, which would in turn help the families arrange for loans with new lenders.

Financial institutions like banks have already opposed the use of eminent domain and filed lawsuits in an effort to prevent the town from implementing their plan.

Richmond's Mayor Gayle McLaughlin is quoted as saying: “We're not willing to back down on this. They can put forward as much pressure as they would like, but I am very committed to this program and I've committed to the well-being of our neighborhoods.”

The refinancing could help families reduce their monthly payments by hundreds of dollars.

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