IRVINGTON, N.J. – Irvington, N.J., is moving forward with plans to become the second municipality in the nation to use eminent domain to buy mortgages that are in foreclosure.
At a rally Saturday, Mayor Wayne Smith said the city will perform a legal study of the proposal to use eminent domain, which has drawn forceful opposition from Wall Street, real estate groups and some in Washington, while gaining the support of a civil rights group typically opposed to the practice.
“When you hear those words, it usually has a negative connotation,” Smith said. But, when used to take control of underwater mortgages the city will “recast it so people can stay in their homes.”
The city of 53,000 that neighbors Newark has been hard-hit by foreclosures. Officials said nearly 1,800 homes here have been foreclosed on since 2008.
The city has an unemployment rate of 12.4 percent, according to the U.S. Bureau of Labor Statistics.