Emanuel: Eminent domain not ‘the right instrument’ to address underwater mortgages

Mayor Rahm Emanuel said Tuesday that he does not support the idea of using eminent domain to seize underwater homes and then refinance those mortgages to more affordable terms.

He made the statement as Chicago aldermen were in a committee hearing trying to understand the proposal floated by a California firm.

The concept of using eminent domain to help solve the nation’s housing crisis surfaced in San Bernardino County, Calif., and has since been taken up for discussion in several municipalities.

Last week, the Federal Housing Finance Agency, the conservator of Fannie Mae and Freddie Mac, said it had “significant concerns” about any use of eminent domain to help underwater homeowners.

Chicago Tribune

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