Newark, NJ Takes Steps Toward Eminent-Domain Plan
The city of Newark, N.J., is moving forward with a foreclosure-prevention plan that could involve using the power of eminent domain to restructure underwater mortgages.
The Newark Council voted unanimously Wednesday to take steps toward establishing a program that would allow the city to purchase troubled mortgages from banks and reduce the principal on the loans, thereby allowing struggling borrowers to stay in their homes. The vote allows the city to begin conducting legal research and policy analysis. Cities including Richmond, Calif., Irvington, N.J., Seattle, and Yonkers, N.Y., are exploring similar plans.
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