MRP Has a Bad Reputation
"The Obama administration has concerns with a proposal… that would use eminent domain to seize and restructure mortgages, according to a White House official.
The eminent-domain gambit is being advocated by Steven Gluckstern, the chairman of Mortgage Resolution Partners, a San Francisco-based venture capital firm."
“MRP sells themselves as a community advisory group but it is really a vulture fund that’s trying to take advantage of an opportunity in the marketplace to enrich themselves.”
The only people and organizations saying this will help stabilize the market are the people making money off of this deal. Nearly forty major organizations working in Nevada’s housing market have united to oppose this scheme. See the list here.
MRP's plan sets a legal precedent that a City has the right to foreclose on your home even if you are current on your mortgage payments. And our housing market is getting better without this scheme. Property values in Las Vegas grew by 28% in the last year, and the market is quickly healing itself. This predatory scheme is trying to fix a problem that no longer exists.
Homeowners who don’t even participate could be hurt by the government allowing this program. Lenders said that this could cause a “chilling effect” on the lending in the area because there will be a question on valuations of these properties. This could result in your home becoming harder to sell because your home may lose value, or a potential buyer may not be able to get financing for your house.