I applaud Mayor Gale McLaughlin of Richmond for standing up to the banks by using eminent domain to save the homes of her constituents. The bank bailout cost $700 billion in taxpayer money, which, in turn, the bank CEOs gave themselves raises, and according to Bloomberg News, the taxpayers paid $12.8 trillion to lend, spend or guarantee deposits of the banks. However, $135 billion was spent in October 2010 to insure the mortgages of Fannie Mae and Freddy Mac.
Even more egregious than this, the banks that foreclose upon family homes are allowed to default on the property taxes for up to five years without penalty. Property taxes are how cities and counties support all services and maintain our infrastructure.
Then, the banks sell the property in a short sale or foreclosure to the buyer passing along the unpaid property tax debt. If the banks, which were too big to fail, absorbed even more smaller banks and were required to pay the property taxes from day one of the properties they foreclose upon, our cities and counties would be flush with money. But yet again, the banks’ failure has failed us, the taxpayers, again.
Yet the writer states it’s an “An inappropriate use of the land-grab law” (in the Aug. 21 edition of the Daily Journal). What could be more appropriate than a mayor looking after her constituents and making sure that families stay in their homes and are not living out in the streets?
South San Francisco