63°F
weather icon Mostly Cloudy

California schemers urge eminent domain abuse in Nevada

As Nevada citizens are well aware, an awful lot of really bad liberal public policy ideas come out of our neighboring state to the west. Indeed, they don’t call California the “land of fruits and nuts” for nuthin’.

So it will come as no surprise that a really bad scheme to abuse the government’s very limited, very specific powers of eminent domain is seeping across the Golden State border and trying to gain a foothold in the Silver State.

The scheme was initially dubbed the Community Resolution Assistance Program (C.R.A.P.) by Byron Georgiou, a partner in the California company, Mortgage Resolution Partners (MRP), which is currently peddling the scheme to the city of North Las Vegas. And if NLV buys into the program, this C.R.A.P. could spread all across our state … and eventually take over the world!

OK, that last part was thrown in for dramatic effect. But the threat is real; made more so because the scheme just sounds soooo good … as long as you don’t bother to look too deeply into the details or care about the Constitution.

In layman’s terms, the Founding Fathers extended the power of eminent domain – the power to “take” your property for a public purpose, such as building a school or highway – to local governments so long as the property owner was fairly compensated. MRP is selling C.R.A.P. to local governments as a way to alleviate their home foreclosure problems, arguing that’s an acceptable public purpose.

In a nutshell, the government would use its eminent domain power to seize the mortgages of homeowners who are current on their payments but who are “underwater” on the value of their homes. The current mortgage holders would be paid just a fraction of what they’re owed, maybe less than 50 cents on the dollar.

Georgiou’s vulture capitalists would then try to get the homeowners a new loan at current market value, pocketing the difference from the amount the city seized the loan for. If successful, MRP would “earn” a tidy $4,500 fee just for being the middle man…while the city gets a little “vig” on the side for its trouble.

Two problems: First, the lenders who hold the current loans — the actual “property” in question, not the home itself — would get the royal shaft, not fair compensation.” And secondly, there’s no guarantee the homeowner will be able to secure a new loan … meaning they’d lose their home and be C.R.A.P. out of luck!

Cities around the country are being told this is a risk-free, no-cost way for local governments to do “something” about their foreclosure problems. But as the sayings go, the devil’s in the details, and if it’s too good to be true…

Nevadans should tell California we’re not gonna to take this C.R.A.P.

(Mr. Muth is president of Citizen Outreach, a conservative grassroots advocacy organization. He can be reached at chuck@citizenoutreach.com)

Don't miss the big stories. Like us on Facebook.
THE LATEST
COVID-19 and how residents are ignoring the self-quarantine

Some residents of Nevada ignore the call for voluntarily self-quarantining and social distancing. There are still a lot of people out in the community, and traffic on the roads is still substantial. If you make a quick trip to pick up essentials at the grocery store, you will see that stores are still being overrun by shoppers madly searching for the ever-elusive rolls of toilet paper and paper towels. Head into a big box hardware store to pick up repair parts, and shoppers fill the aisles who have no idea what social distancing means. Bored at home and seeking something productive to do, homeowners have decided to occupy their free time by tackling projects around the yard and house. Signs around the stores asking shoppers to maintain social distancing are largely ignored by many as they go about their business. Yes, you will see some residents wearing surgical face masks. You will also see some wearing homemade masks of cloth or windsocks pulled up and cover their face and nose. Some shoppers, as they navigate down crowded aisles, will move to keep at least six feet between them and other shoppers. Then there are those shoppers who crowd in on top of you as stand waiting to check out without any regard to the prominently places signs asking them to stay back at least six feet. For them and for others who are not heeding the request to stay at home and for social distancing, the COVID-19 virus is not a real threat.

By the time we notice we’re hungry, it may be too late

“As the top U.S. watermelon-producing state prepares for harvest, Reuters reports, “many of the workers needed to collect the crop are stuck in Mexico …. Without the workers, crops could rot in fields throughout the country,” starting in Florida and California where major harvests begin in April and May.

It’s not the zombie apocalypse we were promised

For years we have all watched the movies and read the books about a global pandemic that would herald the end of mankind as we know it. When the virus was first reported, I was alarmed and was very glad that the president at least stopped flights from China. What happened next still puzzles me.

California Lottery

No one matched all five numbers and the mega number in the Wednesday, March 11 drawing of the California Super Lotto. The next jackpot will be at least $10 million.