The City of Richmond, California began sending letters to mortgage servicers and trustees offering to buy home mortgages at reduced prices or face eminent domain proceedings.

Richmond is the first city in the nation to try eminent domain as a way to stop foreclosures. In January, San Bernardino County in California decided against a controversial proposal and said that the use of eminent domain would “destabilize the local housing market and even worsen the mortgage crisis.”

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.