A colleague sent me an article that I somehow missed from the LA Times a couple of days ago. It turns out that a couple cities in the county of San Bernardino have just unanimously approved an effort to apply eminent domain in order to reclaim underwater properties and force the restructuring these mortgages in order to benefit the existing homeowners.
A City Supports its People
I had a brief exchange with a couple of agents here at the office, and one surprising aspect of the conversation related to the ability or, I should say, inability of these fellow colleagues to believe that city officials would go as far as supporting their residents through a program that requires private funding in order to assist him restructuring under water mortgages. I think that it’s important to understand exactly the value that residents provide city officials. Without residents in good standing, said he generally see deterioration of overall lifestyle within the city limits, and this deterioration taxes the existing framework and overall structure of the city’s infrastructure.
Perhaps the city will see a rise in crime.
Perhaps the city will see higher high school dropout rate due to the number of families who need high schoolers to help support the upside down finances of the family.
In short, programs such as these not only support those who are in poor standing with their mortgages, but also those who are in good standing with their mortgages. A healthy stable real estate market is what every city official wants for its people. Turning the corner as a nation and finding stability is a common goal of many.