North Las Vegas Looks at Using Controversial Plan for Underwater Homes | Housing
The city of North Las Vegas is looking at a controversial plan that would help homeowners who own more on their homes than they are worth stay in their homes.
A company called Mortgage Resolution Partners pitched the idea of using eminent domain to take mortgages from lending banks, during Wednesday's city council meeting.
After seizing the mortgages, the city would then work with the homeowner to refinance their homes while Mortgage Resolution Partners would hold the mortgages.
"The entire purpose of this program is to keep homeowners in their homes. To keep the blight and deterioration of communities associated with foreclosure from continuing," Bryon Georgiou with Mortgage Resolution Partners said.
The Greater Association of Las Vegas Realtors does not want the plan. The group says it raises legal questions and would give lenders little reason to try to finance any homes in the area.
Traditionally, city or county governments use eminent domain laws to buy property, whether owners want to sell or not, to make way for large construction projects designed to improve the community for everyone. This plan would be entirely voluntary.
The city is planning a workshop so homeowners and city officials can gather more information.