My property is "underwater" or for those of you who don't know...I owe more than my house is worth (negative equity). I just did the math off of a recent sale in my association of a foreclosure, and I can't even bring myself to say out loud, just how underwater I am. But I can afford my monthly payments, so being in negative equity should have no material impact on my life. My house is my home, and since I need a roof over my head, I should be ok...right?
I'm in process of studying for my architectural registration exams, (six down, three to go, one being on Monday)...and eminent domain is one of many topics on this next exam, and as I was reviewing my notes, the Barry Farm/ Parkchester/ Wade Road Redevelopment came to mind. When I first discovered the plan about a year after it was "approved" I noticed that not all of the buildings that exist today will exist "tomorrow". Everyone knew that Barry Farm Dwellings, the section 8 housing that the District manages would be redeveloped, and there are a few buildings that the city has already acquired which sit vacant along Eaton Road--so it's a little more than obvious that those will be torn down too, but I often wondered what would happen to all the single family homes, condos, and apartment buildings that sit in between?
When I stumbled across the plan and duly noted that my building was no where to be found and that the condos next to me were gone, as were a fair amount of other buildings I started making phone calls to various agencies as to what that meant. I was assured by one sympathetic woman that even though the plan had been approved (and I now had no say as to what happened to my house), I would be "fairly" compensated by the District when they did finally bring in the wrecking balls.
But who decides what is "fair"?
And regardless of what is considered "fair", if your property is underwater, than what happens when the government exercises eminent domain on your house and only pays the "fair market share"? Do I get slapped with a bill from the bank for the difference on my mortgage? Or would the bank just have to eat the difference for the loan?
Thoughts?
I can't help but quote philosopher/author Ayn Rand: "The idea that 'the public interest' supercedes private interests and rights can have but one meaning - that the interests and rights of some individuals take precendence over the interests and rights of others."...
Now I'm not saying the redevelopment of Barry Farm is necessarily a bad thing, but I do not think it would be fair for the government to take my home (or anyone elses for that matter), and leave us with a big fat bill to boot...if you're gonna tear my house down, at least help me get out from under my mortgage so I can afford to go elsewhere....right?
Thanks to Cox and Forkum for the use of the political cartoon...
