Innovative mortgage plan launched

The city of North Las Vegas has launched a novel experiment to try to help hard-pressed homeowners. It is employing the city's power to condemn property to seize home loans for underwater homes.

The city will then pay mortgage investors less than the full value of bad home loans.

The program was launched in partnership with Mortgage Resolution Partners (MRP), a California program that refinances home loans seized through eminent domain. It will charge the city a fee for each loan and each side will accept a cut on the margin between the original mortgage and a new Federal Housing Administration-guaranteed loan.

The North Las Vegas City Council approved the plan June 19 on a 4-1 vote.