Supporters and opponents of using eminent domain to help distressed homeowners debated the topic today Tuesday at the Center for American Progress in Washington. It’s a process where local governments buy homes that are worth less than their mortgages, and sell them back to the homeowners at a lower price. A number of communities across the country are considering using eminent domain to prevent foreclosures, but the idea is likely to be challenged in court before it can go forward.
Panelists included: Steven Gluckstern, chairman of Mortgage Resolution Partners, which provides services for authorities considering the eminent domain option; and Tom Deustsch, executive director of American Securization Forum, which opposes the method.
The Featured speaker, former Rep. Brad Miller (D-NC) wrote an editorial in "American Banker" arguing for the value of eminent domain in the housing market.
Also taking part were: Michael Ettlinger, vice president of Economic Policy at CAP; Julia Gordon, director of Housing Finance & Policy at CAP; and Jim Carr, senior policy fellow at Opportunity Agenda.