Link

Newark, NJ Takes Steps Toward Eminent-Domain Plan

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.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s