In The News: Richmond Seeks Partners for Seizure of Foreclosed Properties
On January 13, 2014 the Sacramento Bee Newspaper reported that the City of Richmond are seeking a partnership with other local communities. Richmond wants to form a joint powers authority that would allow it to seize the mortgages on foreclosed homes, write down the principal, and refinance the loan. Mortgage lenders and investors would take a financial loss when the amount owed on the loans was written down. According to the article, the Richmond City Council has been unable to seize foreclosed mortgages using eminent domain, which would require a super majority vote. The joint power authority would be a work-around.