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Opinion
James Greiff

Eminent Domain Scheme Has a Tax Problem

There's been plenty of carping about the plan by Richmond, California, to use eminent domain to seize mortgages and, with the help of the investment firm Mortgage Resolution Partners, lower the loan principal for more than 600 homeowners who owe more than their homes are worth.  

There's been plenty ofcarping about the plan by Richmond, California, to use eminent domain to seize mortgages and, with the help of the investment firm Mortgage Resolution Partners, lower the loan principal for more than 600 homeowners who owe more than their homes are worth.

Aside from the complaining by banks and investors that it's unconstitutional, unfair and will kill off new mortgage lending, there's one issue that hasn't gotten as much attention: Taxes, and how some think they make the plan unworkable.