California’s Eminent Domain Advocates Take Plan To New York

Posted by Orb Staff on July 27, 2012 No Comments
Categories : Mortgage Servicing

12075_78484219 California's Eminent Domain Advocates Take Plan To New York The group behind the controversial plan involving the use of eminent domain laws to seize underwater mortgages in California is looking to bring its concept to the East Coast.

According to a Newsday report, executives from Mortgage Resolution Partners have met with officials in Suffolk County in the Long Island section of New York to explain how their plan works. A recent report found that 8.4% of homeowners in Suffolk County and neighboring Nassau County had underwater mortgages during the first quarter of this year.

Suffolk County Executive Steve Bellone acknowledged meeting with Mortgage Resolution Partners, but remained non-committal about adopting the group's eminent domain proposal.

‘We'll look closely at what happens elsewhere,’ says Bellone. ‘It's a novel approach, but it requires a significant amount of analysis and vetting.’

Peter Elkowitz, head of the nonprofit Long Island Housing Partnership, has also reviewed the plan and rejected it as a solution for local housing problems.

‘The best way may be for nonprofits to work directly with the investors interested in acquiring mortgages,’ Elkowitz says. ‘If [homeowners] can do this without government, they'd be better off. We have many people interested in these properties, and I see it being able to work with the private sector.’

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