Is Eminent Domain the Answer to Foreclosure Crisis?

by The American Apartment Owners Association
Tuesday, July 24th, 2012

FGG Editor's Note:  Local municipalities PLEASE CALL THEIR BLUFF, so that responsible homeowners, investors and our neighborhoods across America can begin to heal, sooner rather than later.  In a constitutional challenge to the use of eminent domain, the case will become encumbered by insurmountable legal issues related to MERS, chain of title, non-existent "note holders", promissory notes that no longer exist, securitization and the vast secondary mortgage market shell game.  Dare them to file their eminent domain challenges, then grab some popcorn and settle in to witness what will surely become a legal extravaganza.  Airing this filthy laundry in a Court of Law, will provide American citizens with the transparency we have always deserved.

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The Securities Industry and Financial Markets Association (SIFMA) released a legal memo  drafted by O’Melveny & Myers LLP partners Walter Dellinger, Jonathan Hacker, and Matthew Close that addresses what they say are a number of legal and constitutional problems.

They fear that the legal structure of the MRP proposal would expose the participating municipalities and taxpayers to potentially enormous liability to existing note holders if courts recognize — as they likely will — the correct market value of performing loans.

http://www.american-apartment-owners-association.org/blog/2012/07/19/is-...