A flood of foreclosures in neighborhoods, cities and towns can cause everyone’s real estate equity to plunge. Some towns would like to step-in to protect their communities, but they can’t get the mortgage notes written down to affordable levels for contractual reasons. The solution: use eminent domain to claim the properties for the municipality, then renegotiate them on behalf of struggling homeowners. Ellen talks with the pre-eminent legal mind behind the emerging eminent domain stratagem, Cornell professor Robert Hockett, whose idea has been catching on in towns across America, including some of the biggest.
Read more here.