MamaHappy Posted April 24, 2011 Share Posted April 24, 2011 We've got a tough situation going on, I'd like some opinions if you don't mind. It's kinda complicated, but here goes... The city where we live is building a road through our property and will need to take our entire property. Okay, fine. The road IS needed and we are okay with moving. The law states that homeowners are to be paid "just compensation" which is typically fair market value. Homeowners are entitled to be "made whole" and need to be put in the same monetary position as if their house was not taken. Homeowners are also entitled to a comparable replacememt home. The problem is that we bought our house 4 years ago at the height of the market and our house value has dropped $100,000 or more. We are now upside down on our mortgage because of the housing crisis. So with the city only offering us fair market value, we can't pay off our mortgage or have any money to put down a new home (we put 20% down on this house to avoid PMI). The city says they can only use taxpayer money to give us what the house is worth and nothing more. I'm feeling so distraught over the whole situation. Fair market value is defined as what a willing buyer and willing seller will agree to assuming both parties are under no pressure to buy or sell. We would *never* sell our house right now on the open market because we can't afford it! So fair market value hardly seems "fair" to me right now. Well, I guess it's certainly fair for the city. :glare: I'd really love some thoughts on this or on eminent domain in general. Quote Link to comment Share on other sites More sharing options...
DawnM Posted April 24, 2011 Share Posted April 24, 2011 Do they set the price or are you having to come up with a figure? Dawn Quote Link to comment Share on other sites More sharing options...
MamaHappy Posted April 24, 2011 Author Share Posted April 24, 2011 Do they set the price or are you having to come up with a figure? Dawn They do an appraisal. Quote Link to comment Share on other sites More sharing options...
Pax Posted April 24, 2011 Share Posted April 24, 2011 Talk to an attorney. Try to find one who will do the initial consult for free and then, if they say you have any wiggle room, hire an attorney to negotiate for you. Oftentimes, officials will respond in a completely different manner to an attorney than a regular joe. Of course, there may not be any wiggle room for the city but, no matter what an attorney may give you some ideas of how to proceed. I'm sorry you are in this position.:grouphug: Quote Link to comment Share on other sites More sharing options...
kalanamak Posted April 24, 2011 Share Posted April 24, 2011 Ugh. I'd be nauseated. :grouphug: Quote Link to comment Share on other sites More sharing options...
Anne in CA Posted April 24, 2011 Share Posted April 24, 2011 I know a realtor who told me that when the city of Portland expanded some streets to accomodate a hospital expansion that they paid off the mortages plus down payments to people who had bought houses at the hight of the real estate market, so I know that it can be done. I hate to say it, but an attorney is probably what you need. And not just any attorney, but one who deals with this sort of thing. The name of your attorney will probably matter a great deal to the city.:grouphug: Quote Link to comment Share on other sites More sharing options...
QueenCat Posted April 24, 2011 Share Posted April 24, 2011 :grouphug:s. I second talking to an attorney. I don't think you can not afford it in this situation. Quote Link to comment Share on other sites More sharing options...
JennyD Posted April 24, 2011 Share Posted April 24, 2011 i agree that consulting an attorney is crucial here. It would seem to me that you have a good argument that in your particular case, paying you fair market value does not make you whole, and from what you say, the statute mandates both. I also have to imagine that there are cases just like yours springing up all over the country. Just googling quickly, here one article on the subject: http://www.rebusinessonline.com/main.cfm?id=13206 I'm sorry for the headache (and heartache). :grouphug: Quote Link to comment Share on other sites More sharing options...
jenL Posted April 24, 2011 Share Posted April 24, 2011 :grouphug: I'm really sorry you have to go through this. Quote Link to comment Share on other sites More sharing options...
Jana Posted April 24, 2011 Share Posted April 24, 2011 We've got a tough situation going on, I'd like some opinions if you don't mind. It's kinda complicated, but here goes... The city where we live is building a road through our property and will need to take our entire property. Okay, fine. The road IS needed and we are okay with moving. The law states that homeowners are to be paid "just compensation" which is typically fair market value. Homeowners are entitled to be "made whole" and need to be put in the same monetary position as if their house was not taken. Homeowners are also entitled to a comparable replacememt home. The problem is that we bought our house 4 years ago at the height of the market and our house value has dropped $100,000 or more. We are now upside down on our mortgage because of the housing crisis. So with the city only offering us fair market value, we can't pay off our mortgage or have any money to put down a new home (we put 20% down on this house to avoid PMI). The city says they can only use taxpayer money to give us what the house is worth and nothing more. I'm feeling so distraught over the whole situation. Fair market value is defined as what a willing buyer and willing seller will agree to assuming both parties are under no pressure to buy or sell. We would *never* sell our house right now on the open market because we can't afford it! So fair market value hardly seems "fair" to me right now. Well, I guess it's certainly fair for the city. :glare: I'd really love some thoughts on this or on eminent domain in general. This seems the important bit. Get an honest, competent lawyer. They should be able to give you an indication of what a likely outcome will be. Quote Link to comment Share on other sites More sharing options...
tammyw Posted April 24, 2011 Share Posted April 24, 2011 That is ridiculous. Definitely consult an attorney, and quick. I hope it all works out for you. I'm freaking out on your behalf, because I just can't imagine being put in that position. It's so completely not fair :( Quote Link to comment Share on other sites More sharing options...
Researcher Posted April 24, 2011 Share Posted April 24, 2011 This seems the important bit. Get an honest, competent lawyer. They should be able to give you an indication of what a likely outcome will be. :iagree: I hope you are able to come to a resolution that puts you in a comparable home. :grouphug: Quote Link to comment Share on other sites More sharing options...
Lisa in Jax Posted April 24, 2011 Share Posted April 24, 2011 Dh is a real estate lawyer. He said to immediately get an Imminent Domain lawyer. In most cases, though the ID lawyer works for YOU, the state/local government will have to pay the lawyer's fees, and that the lawyer will try to get the offer increased to the point that you are not financially harmed. HIH, Lisa Quote Link to comment Share on other sites More sharing options...
Hedgehog Posted April 24, 2011 Share Posted April 24, 2011 Yuck. :iagree: with getting legal advice. :grouphug: Quote Link to comment Share on other sites More sharing options...
joannqn Posted April 24, 2011 Share Posted April 24, 2011 Dh is a real estate lawyer. He said to immediately get an Imminent Domain lawyer. In most cases, though the ID lawyer works for YOU, the state/local government will have to pay the lawyer's fees, and that the lawyer will try to get the offer increased to the point that you are not financially harmed. HIH, Lisa :iagree: You need an attorney experienced in this area. Quote Link to comment Share on other sites More sharing options...
MamaHappy Posted April 24, 2011 Author Share Posted April 24, 2011 Thank you so much for the replies! Yes, we've talked to an eminent domain attorney and we've actually "officially" hired her yesterday. This is a very reputable ED attorney who knows her stuff and the fact that she's willing to take out case says a lot. But I'm still freaking out! What we are specifically wanting is our mortgage paid off and a 20% down payment on a new house since that's what we put down in our current house. We feel this is what it takes to put is in an equitable situation. Ugh, this whole situation just really stinks and I keeping hoping this is some kind of terrible nightmare that I'll wake up from soon. :( Quote Link to comment Share on other sites More sharing options...
Mommyof4ks Posted April 24, 2011 Share Posted April 24, 2011 Thank you so much for the replies! Yes, we've talked to an eminent domain attorney and we've actually "officially" hired her yesterday. This is a very reputable ED attorney who knows her stuff and the fact that she's willing to take out case says a lot. But I'm still freaking out! What we are specifically wanting is our mortgage paid off and a 20% down payment on a new house since that's what we put down in our current house. We feel this is what it takes to put is in an equitable situation. Ugh, this whole situation just really stinks and I keeping hoping this is some kind of terrible nightmare that I'll wake up from soon. :( Glad you were able to get a lawyer to help you. What a nightmare. :eek: Quote Link to comment Share on other sites More sharing options...
tex-mex Posted April 24, 2011 Share Posted April 24, 2011 Happy for the update! Quote Link to comment Share on other sites More sharing options...
Sparkle Posted April 25, 2011 Share Posted April 25, 2011 :grouphug: Quote Link to comment Share on other sites More sharing options...
Brindee Posted April 25, 2011 Share Posted April 25, 2011 Wow, I'm so sorry you have to go through this! Praying things work out well for you! :grouphug: Quote Link to comment Share on other sites More sharing options...
.... Posted April 25, 2011 Share Posted April 25, 2011 My uncle is going through this also, in Detroit. :grouphug: Quote Link to comment Share on other sites More sharing options...
Ottakee Posted April 25, 2011 Share Posted April 25, 2011 We are currently in a very similar situation. We are rural and right now have stakes in our yard making out the new expressway that is coming through our home and horse pastures. I agree with the lawyer and DO NOT talk to the appraisers personally or try to negotiate on your own. You can't stop them but when they come for the appraisal, maybe have a friend there to take them through the house as you would be tempted to say something that then might be held against you. We have our home paid off BUT we are in an area where home values have dropped BUT there is NOTHING comparable to our place for sale in our area. We have 6 bedrooms, 3 1/2 stall attached garage (not a huge house but very livable), 5 1/2 acres with a 40x48 horse barn and improved horse pastures. We don't know where we will get anything like this in this area. We have found homes for sale--but nothing over 4 bedrooms (we do foster care so the extra bedrooms are used for that). They also aren't set up for horses, etc. We saw one Saturday that we all really liked but it didnt' have room for the horses as it was only 2.8 acres with no room to buy from the neighbors. We also saw a house with enough acreage but the land was low and very wet and the house needed a LOT of work. We have a lawyer and he thinks we will get enough to build but we will see. Our appraisal has been done and now we are waiting for the numbers to come in and an offer from the state. I totally understand how frustrating this is. My kids are all upset and don't want to move and we have no idea where we could go. Quote Link to comment Share on other sites More sharing options...
MamaHappy Posted April 25, 2011 Author Share Posted April 25, 2011 My uncle is going through this also, in Detroit. :grouphug: How are things going for him? Quote Link to comment Share on other sites More sharing options...
MamaHappy Posted April 25, 2011 Author Share Posted April 25, 2011 We are currently in a very similar situation. We are rural and right now have stakes in our yard making out the new expressway that is coming through our home and horse pastures. I agree with the lawyer and DO NOT talk to the appraisers personally or try to negotiate on your own. You can't stop them but when they come for the appraisal, maybe have a friend there to take them through the house as you would be tempted to say something that then might be held against you. We have our home paid off BUT we are in an area where home values have dropped BUT there is NOTHING comparable to our place for sale in our area. We have 6 bedrooms, 3 1/2 stall attached garage (not a huge house but very livable), 5 1/2 acres with a 40x48 horse barn and improved horse pastures. We don't know where we will get anything like this in this area. We have found homes for sale--but nothing over 4 bedrooms (we do foster care so the extra bedrooms are used for that). They also aren't set up for horses, etc. We saw one Saturday that we all really liked but it didnt' have room for the horses as it was only 2.8 acres with no room to buy from the neighbors. We also saw a house with enough acreage but the land was low and very wet and the house needed a LOT of work. We have a lawyer and he thinks we will get enough to build but we will see. Our appraisal has been done and now we are waiting for the numbers to come in and an offer from the state. I totally understand how frustrating this is. My kids are all upset and don't want to move and we have no idea where we could go. Oh man, I'm sorry! I do hope you get enough to build as it looks like you won't be able to find anything comparable. I had no idea this sort of thing was going on around the country. I mean, I knew that governments can come in and buy your property for public means, but I dind't realize the compensation part was such an issue. Very frustrating. Quote Link to comment Share on other sites More sharing options...
laughing lioness Posted April 25, 2011 Share Posted April 25, 2011 I know a realtor who told me that when the city of Portland expanded some streets to accomodate a hospital expansion that they paid off the mortages plus down payments to people who had bought houses at the hight of the real estate market, so I know that it can be done. I hate to say it, but an attorney is probably what you need. And not just any attorney, but one who deals with this sort of thing. The name of your attorney will probably matter a great deal to the city.:grouphug: :iagree:I'm sorry u r going through this! Quote Link to comment Share on other sites More sharing options...
MamaHappy Posted April 25, 2011 Author Share Posted April 25, 2011 I know a realtor who told me that when the city of Portland expanded some streets to accomodate a hospital expansion that they paid off the mortages plus down payments to people who had bought houses at the hight of the real estate market, so I know that it can be done. I hate to say it, but an attorney is probably what you need. And not just any attorney, but one who deals with this sort of thing. The name of your attorney will probably matter a great deal to the city.:grouphug: This is very good to know, thanks! Yeah, our attorney does mostly with tough eminent domain and I think she's well known as she's taken on quite a few high profile cases. She seems really great. Quote Link to comment Share on other sites More sharing options...
QuirkyKapers Posted April 25, 2011 Share Posted April 25, 2011 :grouphug: I hope things can get resolved in a timely manner. it sounds stressful. Quote Link to comment Share on other sites More sharing options...
PentecostalMom Posted April 25, 2011 Share Posted April 25, 2011 :grouphug: I'm really sorry you have to go through this. :iagree: Quote Link to comment Share on other sites More sharing options...
DesertDweller Posted April 25, 2011 Share Posted April 25, 2011 What a terrible situation! I'm sorry you're dealing with this. I would definitely get an attorney before talking with anyone else. Not sure what can and can't be done, but I would do everything possible to get enough to pay off your mortgage. A good attorney can advise you on what your legal rights are. Quote Link to comment Share on other sites More sharing options...
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