This article addresses one of the most critical, ongoing issues of the twenty-first century, the current mortgage crisis. This crisis is one of the worst disasters in American history, leaving hundreds of thousands homeless. In response, the federal government has legislated fiercely, hoping to help struggling homeowners. However, many programs have failed to fix this problem.
This article flexes scholarly knowledge of the fifth amendment’s taking clause in proposing municipalities buy foreclosed homes to sell back to initial and prospective homeowners. The proposal is firmly rooted in reality, however, solving financing issues by further proposing that homeowners seek financing directly from the municipalities, who in turn generate revenue to acquire abandoned or foreclosed homes through the use of state bonds. This solution would allow the real estate market to recover, while preventing the negative effects home vacancies have on neighborhoods, including lower home values, higher crime rates, and lower tax revenues to municipalities.
Due to the taking clause being vastly expanded by the United States Supreme Court in Kelo v. City of New London, the article provides a solution that complies with the Fifth Amendment’s taking clause’s public use requirement, while allowing local governments to handle the mortgage crisis in an effective manner.
Available at: http://works.bepress.com/yasmany_barroso/1/