Document Type
Article
Repository Date
2009
Keywords
mortgages, housing, takings
Subject Categories
Housing Law | Law | Property Law and Real Estate
Abstract
Secured credit in homes has been divided and over-divided and spun into so many separate interests that economically rational, socially beneficial modifications of loans are impossible. The mortgage story is a new one but the excessive fragmentation of property and the creation of waste and inefficiency is not new. And our legal tradition of state property law has an answer, in the form of an anti-fragmentation principle. Consistent with this principle, federal government trustees should be authorized to review mortgages and, where modification would yield greater total return than foreclosure, modify the loans. Blind trustee review, moreover, can be achieved without formal condemnations of property interests or the creation of government liability for regulatory takings
Repository Citation
Dana, David A., "The Foreclosure Crisis and the Anti-Fragmentation Principle in State Property Law" (2009). Faculty Working Papers. 186.
https://scholarlycommons.law.northwestern.edu/facultyworkingpapers/186
