Hire Mortgage Resolution Partners to help reduce foreclosure crisis using eminent domain
In Plain English
The city wants to hire a consulting firm to help address the local foreclosure crisis. The plan involves using eminent domain powers to acquire underwater mortgage loans from banks. If approved, the city could potentially help homeowners avoid foreclosure by restructuring their loans to match current home values.
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Votes
Motion · Official minutes
Approve Advisory Services Agreement with Mortgage Resolution Partners, LLC
6 aye · 0 nay · 1 absent
Why This Vote Matters
The city unanimously approved hiring Mortgage Resolution Partners to advise on using eminent domain to help homeowners facing foreclosure. Under this controversial approach, the city could seize underwater mortgage loans from banks and restructure them so homeowners owe amounts closer to their homes' current values rather than the original inflated loan amounts. This could help residents avoid losing their homes, though the strategy has faced legal challenges in other cities. The 6-0 vote shows strong council support for exploring this aggressive anti-foreclosure tool, with Councilmember Butt absent.
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Related agenda records
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Troubled mortgages resolution
Troubled Mortgages Resolution
Termination of Advisory Service Agreement with Mortgage Resolution Partners, LLC
Terminate Advisory Service Agreement with Mortgage Resolution Partners, LLC
Mortgage acquisition program presentation