The City of North Las Vegas is endangering its financial status with a
cockeyed plan to seize up to 5,000 homes through eminent domain, buy
them with public money and flip them, a man claims in court.
Gregory D. Smith sued North Las Vegas, its City Council and City Attorney Jeffrey Barr, in Federal Court. They are the only defendants.
"The City of North Las Vegas has entered into and embarked upon a plan to use the power of eminent domain to condemn and seize privately-owned residential mortgage loans in the City," the complaint states.
"The City intends to target for seizure mortgages 1) that are performing, i.e. current in their mortgage debt obligation of the homeowner; and 2) where homeowners owe more on their mortgages than the current fair market value of their home, i.e. 'underwater' mortgages; and 3) that are owned by private securitization trusts in secondary mortgage market lending portfolios rather than backed by the federal government through Fannie Mae, Freddie Mac, or the Federal Housing Authority.
http://www.courthousenews.com/2013/07/05/59114.htm
Gregory D. Smith sued North Las Vegas, its City Council and City Attorney Jeffrey Barr, in Federal Court. They are the only defendants.
"The City of North Las Vegas has entered into and embarked upon a plan to use the power of eminent domain to condemn and seize privately-owned residential mortgage loans in the City," the complaint states.
"The City intends to target for seizure mortgages 1) that are performing, i.e. current in their mortgage debt obligation of the homeowner; and 2) where homeowners owe more on their mortgages than the current fair market value of their home, i.e. 'underwater' mortgages; and 3) that are owned by private securitization trusts in secondary mortgage market lending portfolios rather than backed by the federal government through Fannie Mae, Freddie Mac, or the Federal Housing Authority.
http://www.courthousenews.com/2013/07/05/59114.htm
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