Instead of unbalanced or disproportional rewards, all program mortgage debt would be restructured to a previous democratically agreed upon formula based upon property value, loan affordability, and public benefit.
Loan-to-Value (LTV) is the amount of a loan base expressed as a percentage of the property's fair-market value. 50% LTV? 60% LTV? 75% LTV? If a home is valued at $250,000, a 50% LTV would be a loan of $125,000.
The amount of relief to be shared by those in the mortgage retirement or replacement pan can be whatever makes financial sense such that all benefits derived by the comprehensive program are shared equally by those in the program, and by the community that has authorized the use of Eminent Domain. For example, those who own their homes free and clear of mortgages, or are content with whatever financing they may have, would not monetarily benefit from having their neighbor's mortgage debt reduced. So, they should receive a comparable benefit. Perhaps property-tax abatement or some other financial reward the community deemed to be fair.
It's whatever we want it to be.
Immediate public benefit would be two-fold: These public benefit proceedings would serve to expose illegal mortgage-foreclosure practices, and could result in preserving continued and affordable homeownership for hundreds of thousands - if not millions - of families across the USA.
How?
Let's consider mortgage notes that are in foreclosure, or in distress and determined to be "underwater" - a term used to describe homes with mortgage debt in excess of the property value. For example, if a home valued at $250,000 had mortgage debt of $500,000, the home would be considered underwater with a loan-to-value of 200%. The Public Benefit Agency for Eminent Domain Mortgage Retirement or Relief Plan would create a program and then designate those mortgage notes / negotiable instruments for condemnation.
Eminent Domain law would require the new public benefit agency to set aside money to pay for the public taking of the private property (mortgage notes). The public benefit agency would notify the alleged owners of the negotiable instruments (mortgage notes) that their private property (mortgage notes) was subject to condemnation proceedings via the power of Eminent Domain.
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