Question re: property rights in NOLA

[CatBoreal]

Are the people of NOLA losing their property rights?

If, by some miracle, they're still able to pay their mortgage aren't they still owners of that land? Or has this changed under martial law?

I realize public developments like subsidized housing will probably be gone, but what about private land owners?

[bryant69]

1. I woudl assume they would still hold property rights in general

I can't see any justification for taking them away. Although they could do an emminent domain thingy and pay the land owners fair market value for their land (currently underwater in a city that has been destroyed). That would be a lot like just taking the land, come to think of it.

Bryant
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[FormerDittoHead]

2. Interesting wrinkle in the mortage law re: Thom Hartmann

I remember hearing that, according to recent Republican changes in mortgage law (protecting beleaguered investors), if the value of your property goes lower than the outstanding balance on your mortage, the bank (lending institution, etc) has the right to demand the difference in total or foreclose.

At the time, Thom Hartmann wondered if / when the real estate bubble was going to burst, the Shizzle was going to hit the Fizzle but I think that many in NOLA will be losing their properties.

Example (round numbers):

Buy a house for $100,000

In the following year, pay off $10,000 in equity (balance outstanding: $90,000)

Due to circumstances, the property is devalued to $70,000.

Bank sends you a "bill" for $20,000, due *immediately*.

If you're unable to pay, they foreclose.

So with the vast majority of houses destroyed I'm thinking that the many if not most properties will be lost. TRUMP NEW ORLEANS HERE WE COME!

[ultraist]

4. The bank can't just send you a notice of "20k due immediately"

Balloon payments have to be built into the note that the borrower signs. Banks cannot change the terms of the note on a whim or a new appraisal.

For those who signed notes without fixed rates, the interest rates do change without a new contract, but not balloon payments.

[whatever4]

3. That's been something I wonder about too

I'm sure, whatever happens, it will be a mess, and the only one's to loss out will be these victims who cannot possibly fight back. Fight legal theft. Muddlng situations past understanding is what this admin does best, and in this case, I don't believe for a second the victims will be treated fairly.

NO WAY these people are going to get a fair deal.

I mean...why should they? See any indication of fairness YET??

It will be spun, drawn out, and the people will lose out, because THAT is the best possible scenerio for this government. That's just all there is to it. Remember, follow the money. This admin represents pure greed. Period.

Anything that CAN go wrong WILL go wrong, and with these people, we all know it. Foregone conclusion, imho. It's not a question of if their land will be legally stolen, just a question of how. And not a damn thing any of them can do about it.

Say it with me now...eminent domain. If that can fly, why in the world will they be "giving back" the property to the poor folk? They don't have to, they may easily declare it unsafe to rebuild residential housing and...sorry folks. Your property wasn't worth much, even if it's all you had, so we can't exactly pay you to replace it. So sorry. It's just fair wear and tear, and you lived dirt cheap, so you'll have to live dirt cheap SOMEWHERE ELSE and here's your few thousand dollars to do it.

Fight it? Fight it in court? You'll just lose your few thousand dollars. That's always how it works in a buyout, isn't it?

Yeah. That's what I predict. NO WAY they're going to be fair with these people. They do not have to be fair, and so they will NOT be fair. It would go against everything they've done, and everything they stand for. To them, these creeps, believe me, they'll call it "sending good money after bad", because that is what they think if the "victims".

They equate them with vermin. That is the mindset. Our Americans are vermin to the United States of America. They will NEVER be fair to the families that lost everything along with their homes. I think they'll lose their property with barely a whisper in this nation. Their property will be seen as worthless. They won't get a dime. I can't see how it will go any other way.

Why should it?

[ultraist]

5. Yes, eminent domain will force people to sell cheap

And the property will in turn, be sold cheap to developers.

Insurance companies are already screwing homeowners over too. They are saying that for those who did not have additional flood insurance, they wont pay out on damage because the damage was flood damage, not hurricane damage! Such BS.

Flood insurance is very expensive in some areas and is something many don't buy in addition to, regular homeowner's insurance.

[txaslftist]

6. New Imminent Domain decision from USSCT will control this...

...As you have no doubt been reading, there is a coterie of old line wealthy families and business interests who are interested in "rebuilding" New Orleans, but rebuilding it in such a way that the poor will no longer be a part of their new New Orleans.

The Supreme Court's recent imminent domain decision, that says private property can be taken under imminent domain and given over to private parties who have a "better use" for it, will answer your question. The property of the poor will be taken under imminent domain, paid for in post-Katrina values, leaving the poor who owned property with only a partially paid mortgage and leaving the property in the hands of the wealthy developers.

So much for Republican concern for property rights. Republicans value property rights only if you are rich. If you are poor or lower middle class you have the "right" to have your "property" stolen by those wealthier than you so your property can serve the "higher function" of serving the rich.

Have a good day, citizen.