SACRAMENTO, CALIF. - A plan to use eminent domain to seize underwater mortgages has raised hopes of homeowner bailouts in cities stricken by the housing crisis. But could such a novel plan even be legal? Experts say the plan being shopped around by San Francisco's Mortgage Resolution Partners (MRP) may well meet the U.S. Supreme Court's broad definition of a public use under eminent domain law. The investor group is encouraging cities and counties to condemn mortgages and cut the amount borrowers owe to prevent blight and improve local economies. The sticking point, legal experts say, will be when it comes to paying the "just compensation" required by the U.S. Constitution....
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