July 12, 2024

California Home Ownership

California home ownership

For many who don’t live in California this may seem hard to believe. For those of us who are living here, many consider it an example of what Obama’s second term may look like. In other words, a state government that by any measure, is technically bankrupt, a state government controlled by Democrats and their union puppet masters, a state government that’s unfriendly toward business, a state government that steadfastly refuses to make the necessary cuts in government employment and bloated state retirement pensions, a state government that is responsible for the continuing exodus of businesses and non-expansions of businesses within the state, a state government where the environmentalist and politicians would like nothing better than the destruction of the suburbs and the majority of the populace herded into the cities, a state government that intends to spend billions on a high-speed rail system that will be anything but high-speed, and a state government where some officials feel there is nothing wrong with welfare recipients spending their money on cruises or gambling casinos

Given that background, it still seems unbelievable that government officials in Southern California particularly in San Bernardino County, and in the cities of Fontana and Ontario, are considering using eminent domain as a way for the government to take over homes in or facing foreclosure! Actually what officials are considering is not eminent domain against the homes themselves but against the mortgage obligations on the homes.

California recently received $400 million as their share of a 49 state settlement against lenders in an improper foreclosure settlement. It said that the southern California government officials would like to use these funds to pay for this novel eminent domain scheme.

Personally, I think if this plan moves forward it would be overturned in court actions. But, then again we are in California, so if it should be approved and lenders rights under legally signed contracts are totally abolished, what do you think new lenders attitude to potential California homeowners is going to be? Well, most likely a number of lenders will pull out of California and/or increase rates and fees substantially to cover the possibility of having all the terms and conditions of their mortgage agreement nullified by the government.

I believe the city of San Bernardino, California just a few weeks ago declared bankruptcy. Now officials in San Bernardino County think they know better how to handle distressed properties or issue new mortgages. This makes no sense at all, and in any other place but California I wouldn’t think it would have a chance of implementation.

It’s been stated that this whole idea was launched by a San Francisco-based venture-capital company whose co-chairman worked in the Clinton administration and is currently an Obama re-election fundraiser.

California Home Ownership

Maybe I’m being a little too harsh. Perhaps we should look at this loss of constitutional rights as a job program … and California certainly needs jobs! Yes, think about it. The State could create a new division of hundreds of government bureaucrats to administer such a program. Such a program would need a director, support staff, a headquarters building and satellite offices throughout the state. These would be totally new jobs created at good salaries and naturally bloated California pensions for all workers. So, if we look at this proposal as a jobs program, just because it may trample on constitutional rights is no big deal. Right?

I guess all we need is a name for this new California governmental division that will handle the eminent domain proceedings against the greedy lenders and the re-issuance of new current value mortgages and their administration. An appropriate name might be State Total Unprecedented Property Indemnification Division, or STUPID for short.