Richmond CA will buy distressed home mortgages from banks, write them down, then refinance them into lower cost mortgages so homeowners can stay in the home. Here’s the kicker. If banks do not cooperate the city will seize the house using eminent domain. They are doing this to save their city and because the banks have failed to do their jobs.
Mortgage Resolution Partners will provide the funding for Richmond to purchase the loans and also finance any litigation.