Government verses foreclosures – Piggington's Econo-Almanac

This topic has 30 replies, 7 voices, and was last updated 16 years, 10 months ago by DWCAP.

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January 13, 2009 at 5:20 PM #14824

SD Realtor
Participant

Why not try emminent domain?

Cut and pasted from Jim Klinges site. Credit to Jim!

Will they just keep coming up with ideas until one works?

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From cnbc.com:

http://www.cnbc.com/id/28638551

An excerpt:

“Taylor and the NCRC are proposing a new government program, using TARP money, whereby the government would “use its power of eminent domain to take troubled properties/loans from mortgage servicers and lenders, so large numbers of loans could be modified, writing down principal and interest rates. The loans would then be re-sold to the private market.”

The government would buy these loans at a “steep discount.” Eminent domain allows the government to take an asset where a public purpose is served, and it requires that they pay the investor the “fair market value” for it. NCRC claims the fair market value would be about 30-50 percent of the current loan value.

NCRC argues, “Discounting the purchase of these loans would strike a balance between assisting homeowners and ensuring that lenders, servicers and securitizers are not rewarded for financing and servicing predatory and price-inflated loans.” That discounted price would then “be sufficient to write down the loan balance of millions of loans such that they can be permanently refinanced or modified to ensure long-term sustainability.”

It’s not too crazy, no? I mean, if you’re of the opinion that these borrowers should in fact be saved and given back home equity that perhaps they gambled on in the first place. The cost, NCRC estimates, $50-$100 billion.”

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My opinion is that the cost is about 10x to low. However what is the difference between smart piggs like us who held out and are renting, and buyers who overextended and then get the property purchased by the government using emminent domain, then have principal reductions and a loan mod… then get to keep the home with a lower rate and a lower nut…

*************

Please pass me the tape so I can wrap it around my head so it does not explode.

January 13, 2009 at 6:54 PM #328277

XBoxBoy
Participant

[quote=SD Realtor]Eminent domain allows the government to take an asset where a public purpose is served, and it requires that they pay the investor the “fair market value” for it. NCRC claims the fair market value would be about 30-50 percent of the current loan value.[/quote]

Someone que the lawyers stage right….

XBoxBoy

January 13, 2009 at 6:54 PM #328614

XBoxBoy
Participant

[quote=SD Realtor]Eminent domain allows the government to take an asset where a public purpose is served, and it requires that they pay the investor the “fair market value” for it. NCRC claims the fair market value would be about 30-50 percent of the current loan value.[/quote]

Someone que the lawyers stage right….

XBoxBoy

January 13, 2009 at 6:54 PM #328685

XBoxBoy
Participant

[quote=SD Realtor]Eminent domain allows the government to take an asset where a public purpose is served, and it requires that they pay the investor the “fair market value” for it. NCRC claims the fair market value would be about 30-50 percent of the current loan value.[/quote]

Someone que the lawyers stage right….

XBoxBoy

January 13, 2009 at 6:54 PM #328708

XBoxBoy
Participant

[quote=SD Realtor]Eminent domain allows the government to take an asset where a public purpose is served, and it requires that they pay the investor the “fair market value” for it. NCRC claims the fair market value would be about 30-50 percent of the current loan value.[/quote]

Someone que the lawyers stage right….

XBoxBoy

January 13, 2009 at 6:54 PM #328792

XBoxBoy
Participant

[quote=SD Realtor]Eminent domain allows the government to take an asset where a public purpose is served, and it requires that they pay the investor the “fair market value” for it. NCRC claims the fair market value would be about 30-50 percent of the current loan value.[/quote]

Someone que the lawyers stage right….

XBoxBoy

January 14, 2009 at 8:33 AM #328441

Casca
Participant

“Will they just keep coming up with ideas until one works?”

No, they’ll keep coming up with ideas that don’t work. Government is not a meritocracy. It is a social club where getting the monkey off your back, and on another’s, is the game. Ultimately, the taxpayer will be shovelling the monkey doo.

January 14, 2009 at 8:33 AM #328778

Casca
Participant

“Will they just keep coming up with ideas until one works?”

No, they’ll keep coming up with ideas that don’t work. Government is not a meritocracy. It is a social club where getting the monkey off your back, and on another’s, is the game. Ultimately, the taxpayer will be shovelling the monkey doo.

January 14, 2009 at 8:33 AM #328850

Casca
Participant

“Will they just keep coming up with ideas until one works?”

No, they’ll keep coming up with ideas that don’t work. Government is not a meritocracy. It is a social club where getting the monkey off your back, and on another’s, is the game. Ultimately, the taxpayer will be shovelling the monkey doo.

January 14, 2009 at 8:33 AM #328874

Casca
Participant

“Will they just keep coming up with ideas until one works?”

No, they’ll keep coming up with ideas that don’t work. Government is not a meritocracy. It is a social club where getting the monkey off your back, and on another’s, is the game. Ultimately, the taxpayer will be shovelling the monkey doo.

January 14, 2009 at 8:33 AM #328957

Casca
Participant

“Will they just keep coming up with ideas until one works?”

No, they’ll keep coming up with ideas that don’t work. Government is not a meritocracy. It is a social club where getting the monkey off your back, and on another’s, is the game. Ultimately, the taxpayer will be shovelling the monkey doo.

January 14, 2009 at 8:48 AM #328451

peterb
Participant

The govt is ultimately us. The seperation is an illusion they’ve created to make you think you’re being “saved” by some benevolent power.
This is just another idea that wont work. In order to maintain any type of free market, they must be very careful with their level of intervention. Otherwise it becomes socialized and that’s the death of the market. So they can really only make it look like they’re helping.

January 14, 2009 at 8:48 AM #328788

peterb
Participant

The govt is ultimately us. The seperation is an illusion they’ve created to make you think you’re being “saved” by some benevolent power.
This is just another idea that wont work. In order to maintain any type of free market, they must be very careful with their level of intervention. Otherwise it becomes socialized and that’s the death of the market. So they can really only make it look like they’re helping.

January 14, 2009 at 8:48 AM #328860

peterb
Participant

The govt is ultimately us. The seperation is an illusion they’ve created to make you think you’re being “saved” by some benevolent power.
This is just another idea that wont work. In order to maintain any type of free market, they must be very careful with their level of intervention. Otherwise it becomes socialized and that’s the death of the market. So they can really only make it look like they’re helping.

January 14, 2009 at 8:48 AM #328884

peterb
Participant

The govt is ultimately us. The seperation is an illusion they’ve created to make you think you’re being “saved” by some benevolent power.
This is just another idea that wont work. In order to maintain any type of free market, they must be very careful with their level of intervention. Otherwise it becomes socialized and that’s the death of the market. So they can really only make it look like they’re helping.
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