Occupiers propose local governments use eminent domain to seize mortgage contracts from banks to keep families in their homes
This year, activists working with the Occupy Wall Street movement have proposed eminent domain as a wide scale solution for keeping owners facing foreclosure in their homes. The proposed mechanism would have localities (or their appointed representatives) seize large batches of mortgage contracts at or below fair market value, allowing the homeowner to refinance at the fair market value. Proponents say that the solution would be politically and economically feasible.
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In his talk to InterOccupy.org, Michael Sauvante noted that eminent domain applies not just to real property, but to contract rights as well. Specifically, it would apply to the mortgage contracts and promissory notes held by big banks against the homes of millions of people. He noted that suggestions to use eminent domain on behalf of beleaguered homeowners would surprise those campaigning against the power following the Kelo decision, including some who have had victories at the state level, as in the case of this legislation in New Hampshire.
Colleges Withhold Transcripts From Grads in Loan Default
A spokesman from Temple confirms that it is school policy to withhold official transcripts from graduates who are in default on their student loans. As it turns out, the school is not alone; this is the position taken by most colleges and universities, though there is no law requiring such an extortionate position. They do this despite the fact the colleges themselves are not out the money. They have received the students’ tuition payments in full and are in effect simply acting as collection agencies for the federal government.
Rampant student loan debt, an economic recovery’s worst nightmare
I knew that if I ever got my health back that picking up the pieces of my life wouldn’t be easy. I would still be crippled by the damage done to my credit. My ability to get a car back on the road, ever own a home, have children, start a business, or live a fruitful life has been severely damaged. Nobody ever thinks they will lose their health overnight, but it happens all too often. My lender not only had no sympathy for my situation, but they did all they could to capitalize on it.
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