Eminent Domain and the Housing Crisis

Release time：2012-10-12
Browse：4202

A plan to address the housing crisis by having local governments use their power of eminent domain is garnering lots of attention from coast to coast, and one of its architects is Washington and Lee alumnus John Vlahoplus.
A 1983 W&L graduate and Rhodes Scholar, John is a founder and chief strategy officer of Mortgage Resolution Partners L.L.C., a San Francisco-based firm that promotes Community Action to Restore Equity and Stability (CARES™).
A recent Huffington Post story reported that San Bernardino County in California, where as many as half of all homeowners are underwater on their mortgages, is giving careful consideration to the plan "under which Mortgage Resolution Partners fund would front money to allow local governments to purchase underwater mortgages at market value in exchange for a fixed fee of $4,500 per loan. Homeowners could then refinance at the lower value, potentially saving hundreds of thousands of dollars each month in mortgage payments — while also injecting a shot of adrenaline into moribund local economies."
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