Eminent Domain – Is It A Good Idea For The Golden State?

    What is Eminent Domain? It’s the State or Federal Government’s ability to seize the property of a citizen in exchange for “fair” financial compensation. Once the property or home has been seized, the State or Federal Government can then use that land for public use or resell it for economic development.

    Recent Use Of Eminent Domain

    In California some cities like San Bernardino are now considering using their eminent domain powers in the hopes of that seizing properties that are underwater and allowing  will help to turn the real estate market around in those cities. When politicians, Orange County realtors and listing agents across California analyze the use of eminent domain it is an interesting yet controversial idea because, this strategy helps to reduce the principle that the homeowner owes while helping them to get out from their underwater home. Others, however, see the use of eminent domain in California as an opportunity for corporations investing in the new loan to increase their bottom lines with the help of local governments.

    Where Did The Idea Come From?

    Using eminent domain in California isn’t the idea of top politicians in the Golden State, it’s the idea of venture capital firms in the Bay Area like Mortgage Resolution Partners and top investment “gurus” who are politically connected and donated to major political campaigns.
    Many top Orange County realtors and listing agents across California have said that the State and Federal government won’t go after homeowners who are in default, they will go after homeowners who are current on their mortgages but are unable to refinance their underwater homes because, they owe more on their homes than what they are worth.
     Until the State or Federal government starts exercising their eminent powers it remains to be seen just exactly how they will use these powers.
    To learn more about the use of Eminent Domain in California contact Fred Sed & Associates today at (949) 272-0125 or email us at: info@bestocproperties.com.
     

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