ACLU Sues Over Federal Housing Finance Agency's Opposition Using Eminent Domain to Seize Underwater Mortgages, Demands Details of Relationships with Banks Disclosed

Irvington, NJ trying to be second city in the nation to use the tactic

The American Civil Liberties Union of New Jersey and the Brooklyn-based Center for Popular Democracy filed suit today against the Federal Housing Finance Agency in a growing battle for towns seeking to use eminent domain to seize underwater mortgages.

Last month, Irvington's mayor announced plans to conduct a legal study of using eminent domain to help residents facing more than 1,700 homes foreclosures.