'We Don't Follow, We Lead': How New York City Will Save Mortgage Loans by Condemning Them

124 Yale Law Journal Forum 131 (2014)

17 Pages Posted: 3 Dec 2014  

Robert C. Hockett

Cornell University - Law School

Date Written: November 29, 2014

Abstract

This brief invited essay lays out in summary form the eminent domain plan for securitized underwater mortgage loans that the author has been advocating and helping to implement for some years now. It does so with particular attention in this case to New York City, which is now actively considering the plan. The essay's first part addresses the plan's necessity. Its second part lays out the plan's basic mechanics. The third part then systematically addresses and dispatches the battery of remarkably weak legal and policy arguments commonly proffered by opponents of the plan.

Keywords: Bubble, Credit, Credit Bubble, Creditor, Crisis, Debt, Debt Deflation, Debtor, Default, Deflation, Eminent Domain, Loans, MBS, Mortgages, Mortgage Loans, Negative Equity, Underwater Loans, Underwater Mortgages, Private Label Securitization, PLS, Securitization, Securitized Mortgages

Suggested Citation

Hockett, Robert C., 'We Don't Follow, We Lead': How New York City Will Save Mortgage Loans by Condemning Them (November 29, 2014). 124 Yale Law Journal Forum 131 (2014) . Available at SSRN: https://ssrn.com/abstract=2532704

Robert C. Hockett (Contact Author)

Cornell University - Law School ( email )

Myron Taylor Hall
Cornell University
Ithaca, NY 14853-4901
United States

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