If you live in San Bernardino County, and follow Southern California Mortgage News, you know of their very unpopular plan for the use of eminent domain, which they were going to use to size the homes of underwater or troubled homeowners and write down their debt.
Why Was The Plan Stopped?
This plan was stopped this week thanks to votes from members of a group called Joint Powers Authority; an organization that represents two cities: Fontana and Ontario California; according to their chairman of their board, Greg Devereaux, the group decided to give up on their controversial plan due to lack of support from the general public.
Outrage From Wall Street
It wasn’t just local residents who stood against the plan to use Eminent Domain in San Bernardino County, Mr. Devereaux also said that opposition from Wall Street and mortgage groups thwarted San Bernardino’s plans because it was thought that use of their plan would only raise interest rates higher for everyone and make it even harder for borrowers to get their hands on money for new Southern California mortgages.
How Would Eminent Domain Work?
If San Bernardino’s plans to use eminent domain had moved forward they would have been seizing land and not home loans or mortgages in the effort to serve the general publics good; in spite of the failure of their goal to use eminent domain, Devereaux said that cities like San Bernardino and Fontana, CA still plan on examining every solution possible to end the Southern California Mortgage crisis and stabilize the SOCAL real estate market as a whole.
Disappointment Within The Mortgage Industry
Although many companies within the Orange County Mortgage Industry stood against San Bernardino’s plan, some companies like Mortgage Resolution Partners supported it and their chairman, Steven Gluckstern, recently voiced his unhappiness with San Bernardino for stopping their plan to use eminent domain.
In spite of the “bump in the road”, cities like San Bernardino are still faced with the daunting task of thousands of underwater homeowners but thanks to historically low mortgage interest rates and excellent loan options like FHA and HUD, San Bernardino may not have to consider eminent domain again as more underwater homeowners are able to get themselves back on the right track financially.
To learn more about the great mortgage interest rates so you can refinance or get into the first home of your dreams, contact Sun Financial Group today ay (949) 699-1950.
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