City Uses Eminent Domain to Save Homes

The power of eminent domain has traditionally worked against homeowners, who can be forced to sell their property to make way for a new highway or shopping mall. But now the working-class city of Richmond, Calif., hopes to use the same legal tool to help people stay right where they are. Richmond is about to become the first city in the nation to try eminent domain as a way to stop foreclosures. Banks have warned that such a move will bring down a hail of lawsuits and all but halt mortgage lending in any city with the temerity to try it. "We're not willing to back down on this," said Gayle McLaughlin, Richmond's mayor. "They can put forward as much pressure as they would like but I'm very committed to this program and I'm very committed to the well-being of our neighborhoods."

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