Sacramento Area Officials Explore Using Eminent Domain To Aid Underwater Homeowners

City Explores Use Of Eminent Domain To Aid Underwater Homeowners
RICHMOND, CA - JULY 13: Mold covers the walls of a foreclosed home during a bus tour of foreclosed and blighted properties on July 13, 2012 in Richmond, California. Members of the group Alliance of Californians for Community Empowerment (ACCE) joined city officials and Richmond mayor Gayle McLaughlin on a bus tour to view foreclosed properties in neighborhoods in Richmond that have been hit the hardest by foreclosures. Richmond currently has over 1,000 homes in foreclosure. (Photo by Justin Sullivan/Getty Images)
RICHMOND, CA - JULY 13: Mold covers the walls of a foreclosed home during a bus tour of foreclosed and blighted properties on July 13, 2012 in Richmond, California. Members of the group Alliance of Californians for Community Empowerment (ACCE) joined city officials and Richmond mayor Gayle McLaughlin on a bus tour to view foreclosed properties in neighborhoods in Richmond that have been hit the hardest by foreclosures. Richmond currently has over 1,000 homes in foreclosure. (Photo by Justin Sullivan/Getty Images)

Sacramento and Elk Grove officials are exploring a controversial plan to use their powers of eminent domain to seize underwater mortgages from private investors and slash the amounts borrowers owe.

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