Lawrence Green Comments for KCRA on Eminent Domain and Mortgage Crisis
UC Davis School of Law Wydick Fellow Lawrence Green commented for a news report on Sacramento television station KCRA on a Bay Area group's proposal that California cities use eminent domain as a means to seize mortgages in order to help homeowners who owe more money than their property is worth. Morgan Resolution Partners has proposed that cities seize the mortgages, retire them, and then allow the group to work with homeowners to secure new mortgages more in line with the property's value.
Eminent domain is allowed by the U.S. Constitution only if a seizure meets the definition of "public use," said Green. He questioned the public benefit of a plan to acquire only performing mortgages and also noted the potential for disagreement over the fair value of each individual loan.
Lawrence Green, a member of the King Hall Class of 1975, is a Legal Writing and Research fellow at UC Davis School of Law. His professional experience includes more than 20 years of service as Counsel to the California Land Title Association, and he has been retained as a consultant and expert by law firms handling banking, real property, and insurance matters.