Judge Clears Way for Eminent Domain Seizures

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This is a classic example how the government, in this case a city government, is using its power in a totally inappropriate way. If these foreclosures where processed in an illegal manor then the homeowner can appeal it through the courts. If the foreclosures are legal then the government has no business sticking their nose in the process. How can they take sides in a civil case? Please read the article below.

The FHA Condos Approval Company, Inc.

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A federal judge in San Francisco has dismissed a lawsuit brought by BlackRock Inc and other asset management companies that sought to block the city of Richmond, California, from seizing underwater homes under eminent domain laws. The city council of Richmond had voted by a narrow margin to work with lawyers from Mortgage Resolution Partners LLC (MRP) to seize more than 600 properties under eminent domain in an effort to prevent foreclosure and blight.

Justice Charles Breyer said that the suit had to be dismissed because it was based on future events that may never occur. Lawyers for the plaintiffs, which include Fannie Mae and Freddie Mac, said that the seizure of the properties under eminent domain could harm the housing market as a whole if other cities were to follow suit.

“Today’s ruling addresses only the matter of timing before the courts,” said John Ertman, who represented the companies trying to stop the seizure. “This is not a victory for the program and only postpones the day that Richmond and MRP will have to defend this program in court. This is an unprecedented application of eminent domain powers that we believe is facially unconstitutional. If implemented by the City, this eminent domain program will cause harm to millions of savers and retirees throughout the United States. We stand ready to act at the appropriate time to prevent this unconstitutional investment scheme from unfolding in Richmond or elsewhere.”

To read the complete article please use the link below.

Eminent Domain Seizures

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