Richmond, California is attempting to keep homeowners in their homes by using eminent domain to buy underwater mortgages, and the banks don't like it.
The national foreclosure rate increased by more than 3 percent in October compared to the previous month. Some groups across the country are trying to change that by buying underwater mortgages and keeping families in their homes.
Yesterday's $25 billion agreement between five big U.S. banks and state attorneys general could help some three million homeowners who owe more than their homes are currently worth.
Bloomberg News reports a case of a J.P. Morgan Chase letter to a homeowner that said "you could sell your home, owe nothing more on the mortgage, and get $30,000."