Somin Appears on Fox News
Professon Ilya Somin made an August 25 appearance on Fox News to discuss Richmond, California's, proposal to use eminent domain to condemn mortgages on homes that are now worth less than the outstanding debt on the mortgages.
The plan could have negative implications for citizens if in the future lenders were to choose not to loan, or loan only at higher interest rates, in a jurisdiction in which there was risk of mortgage condemnation, Somin noted.
An additional issue, Somin told Fox News' Shannon Bream, was the city's plan to pay 80 percent of the current assessed value of the home, which would violate the government's requirement for payment of 100% of fair market value, something that might present problems for the city in a court battle.
Eminent domain plan to save Richmond, Calif. homes, Fox News, August 25, 2013.