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California City Continues Bid to Seize Underwater Mortgages

Eminent domain plan wins Richmond City Council approval but remains in limbo in face of state law.

By David Morrison | Updated on September 18, 2013

Banks and city officials in Richmond, Calif., continue battling over a local plan to use eminent domain to seize and refinance underwater mortgages. City officials want to use eminent domain to obtain 624 mortgages which the city (population 103,000) has deemed as in danger of foreclosure, which they argue would result in a slide in property values and neighborhood stability. 

Richmond City Council voted 4-3 on Tuesday to move forward with the plan, according to accounts in the local media, but conceded to state law which requires a super majority to support each eminent domain move. 

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