A New York mayoral candidate is the latest to advocate the use of eminent domain for underwater mortgages.  Carl Person, the Reform Party nominee for NYC Mayor, announced “I have drafted and am seeking voter signatures for a proposed NYC law for adoption by NYC voters that would provide for eminent-domain condemnation by NYC of any 1-4 family building, condo or coop unit in which the owner resides if the mortgage is unaffordable by the homeowner and is under water by 10% or more (that is, where the amount owed on all qualifying mortgages is more than 110% of the market value of the property without such mortgages), but the owner could afford a mortgage refinanced at the present market value of the property at the present market rate of interest.”

The proposed law is available for review, downloading and printout at http://www.lawmall.com/nycballotinitiatives.php