Local Governments Consider Using Eminent Domain to Seize Underwater Mortgages

October 04, 2012

Local authorities from San Bernadino County and the towns of Fontana and Ontario, all of which are located in California, have recently created a Joint Powers Authority (JPA) with the purpose of seizing (through the use of the power of eminent domain) and restructuring certain mortgages in an effort to assist “underwater” homeowners and, ultimately, stimulate the economy.