'We are willing to take those loans off their hands, purchase them at a fair price and save the city from the devastation that is happening,' Richmond Mayor Gayle McLaughlin said Tuesday.

Calif. City Threatens to Use Eminent Domain with Underwater Mortgages

The City of Richmond has sent offer letters to roughly 32 mortgage servicers and trustees requesting that it be allowed to buy underwater home loans at reduced prices. If the servicers balk, city officials say they will seek to seize the properties through eminent domain.

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