Nothing shady ever goes down in Las Vegas.
Wait, what I meant to say is that the city is a seething cauldron of corruption where the American dream goes to die.
(From Alternet.org )
“The City intends to target for seizure mortgages 1) that are performing, i.e. current in their mortgage debt obligation of the homeowner; and 2) where homeowners owe more on their mortgages than the current fair market value of their home, i.e. ‘underwater’ mortgages; and 3) that are owned by private securitization trusts in secondary mortgage market lending portfolios rather than backed by the federal government through Fannie Mae, Freddie Mac, or the Federal Housing Authority.
“An example of the functioning of the Plan is a home in North Las Vegas worth $200,000 in the real estate market today but with a $300,000 current mortgage balance. The City plans to condemn and seize privately owned residential mortgage loans and to pay the owner of that note what it believes is just compensation, say, $150,000 for purposes of the example, from money borrowed from private investors. The City would then purport to accept a short payoff of the mortgage loan originally seized, through a new loan for, say, $190,000, if such new financing could be found and the homeowner can qualify for same. The City then plans to extinguish the original $300,000 note it had seized for $150,000 and to pocket the $40,000 difference as revenue to the City.