Lawsuit over Eminent Domain in CA Premature
On September 15, the Las Vegas Sun published an article titled Lawsuit over CA City’s Mortgage Scheme Premature.
Lawsuit over CA city’s mortgage scheme premature
Two banks may have prematurely filed a lawsuit to stop a Northern California city from using eminent domain to seize mortgages from the lenders and pay them less than their full value.
The Contra Costa County Times reported Thursday ( http://tinyurl.com/kq2deb2) that the judge in the case is concerned that the city of Richmond has not yet attempted to seize any mortgages.
Wells Fargo & Co. and Deutsche Bank AG filed the lawsuit after city officials began discussing plans to use eminent domain to seize the mortgages and offer them back to homeowners at cheaper rates. The banks want to stop Richmond from seizing the loans.
But the judge says it appears the banks don’t have a case until Richmond actually authorizes the seizures. The judge says he will rule Monday.
To view the online article, please click here.
Safeguard Properties is the largest mortgage field services company in the U.S. Founded in 1990 by Robert Klein and based in Valley View, Ohio, the company inspects and maintains defaulted and foreclosed properties for mortgage servicers, lenders, and other financial institutions. Safeguard employs approximately 1,700 people, in addition to a network of thousands of contractors nationally. Website: www.safeguardproperties.com.