Following the recent mortgage crisis, a host of homeowners in Orange County, and elsewhere, found themselves unable to make their mortgage loan payments and owing more on their homes than they were worth. While the economic upsurge and recovery of the real estate market throughout much of the U.S. has helped some property owners to get back on track, many are still struggling.
The city of Richmond, in Northern California, is just one of several that have reportedly considered using eminent domain as a means to offer homeowners relief and help them to keep their homes. According to reports, through the plan, the city would work with a homeowner to try to reduce their principal in an effort to avoid foreclosure. There are reportedly 624 home loans that could potentially benefit from the plan in Richmond alone.