Lower Principal on Underwater Mortgages to Market Value

[FayeforCure]

Tell Your Attorney General: Lower Principal on Underwater Mortgages and Create 1 Million Jobs Per Year!



The New Bottom Line released a report detailing a solution to the foreclosure crisis: The Win-Win Solution: How Fixing The Housing Crisis Will Create 1 Million Jobs details the outcome if banks were to lower the principal on all underwater mortgages to current market value:

■Create 1 million jobs every year -- This includes over 300,000 jobs in California, the state hit hardest by the financial crisis. 
■Pump over $70 billion per year back into communities across the country for the next 30 years -- This includes $12 billion dollars per year in Florida, the second of the two states hit hardest by the foreclosure crisis.
■Save American families over $500 on average per month on mortgage payment
■Solve the foreclosure crisis once and for all

The 50 state Attorneys General have been investigating the big banks--JP Morgan Chase, Bank of America, and Wells Fargo--for massive mortgage fraud. But the settlement talks have been dragging on for months. 

Tell your Attorney General: We urge you to take the courageous and much-needed public stand against the greed and selfishness exhibited by these large banks. Work with your us to hold the big banks accountable and to revitalize our communities and our states.

We'll deliver the petition to all Attorneys General, but we want to highlight each Attorney General's constituents so please include your state when signing.


We need a New Bottom Line that puts the interests of people ahead of huge corporate profits. Sign this petition to tell your Attorney General that any foreclosure settlement with banks must include principal reduction on all underwater mortgages to current market value.


1,977 SIGNATURES

GOAL: 3,000 signatures


http://www.newbottomline.com/tell_your_attorney_general_lower_interest_rates_on_under_water_mortgages_and_create_1_million_jobs

[JeffreyS]

I know it would help everyone to some extent .  Hate to be someone who has paid down my principal.  I am a bit under water so it would be nice I would like to sell in the next few years.

[FayeforCure]

JeffreyS. check out the map with the number of underwater mortages by state:

http://www.newbottomline.com/map_of_under_water_mortgages

CA and FL have the highest numbers.

[JeffreyS]

Oh I know and the benefits would be wide spread even for the people who aren't under water.

[Non-RedNeck Westsider]

Or.......

take the money that was used to 'bail-out' the financial institution for gambling with derivatives.  Give an equal TARP payment divided over the population (works out to around 200k per living person) and allow the public to re-invigorate the market. 

Or........

give the money to the banks, let them find another way to exploit us and collect interest on our money that the government lended them until they have enough liquidity to pay us our money back and manage to keep the interest. 

What's the monthly gain on an APR around 2.8% when you have billions invested?

[bill]

Tell Your Attorney General: Lower Principal on Underwater Mortgages and Create 1 Million Jobs Per Year!



The New Bottom Line released a report detailing a solution to the foreclosure crisis: The Win-Win Solution: How Fixing The Housing Crisis Will Create 1 Million Jobs details the outcome if banks were to lower the principal on all underwater mortgages to current market value:

■Create 1 million jobs every year -- This includes over 300,000 jobs in California, the state hit hardest by the financial crisis. 
■Pump over $70 billion per year back into communities across the country for the next 30 years -- This includes $12 billion dollars per year in Florida, the second of the two states hit hardest by the foreclosure crisis.
■Save American families over $500 on average per month on mortgage payment
■Solve the foreclosure crisis once and for all

The 50 state Attorneys General have been investigating the big banks--JP Morgan Chase, Bank of America, and Wells Fargo--for massive mortgage fraud. But the settlement talks have been dragging on for months. 

Tell your Attorney General: We urge you to take the courageous and much-needed public stand against the greed and selfishness exhibited by these large banks. Work with your us to hold the big banks accountable and to revitalize our communities and our states.

We'll deliver the petition to all Attorneys General, but we want to highlight each Attorney General's constituents so please include your state when signing.


We need a New Bottom Line that puts the interests of people ahead of huge corporate profits. Sign this petition to tell your Attorney General that any foreclosure settlement with banks must include principal reduction on all underwater mortgages to current market value.


1,977 SIGNATURES

GOAL: 3,000 signatures


http://www.newbottomline.com/tell_your_attorney_general_lower_interest_rates_on_under_water_mortgages_and_create_1_million_jobs

Dear AG,

I would like you to force a private company to reduce principle and interest of folks that made bad choices as they were forced to buy overpriced houses. If their house prices had gone up and they made a profit then they would have surely shared that with you.

These companies are BIG and BAD so it does not matter that I and many others have invested in them. They unfairly, are trying to make a profit, egads! We have arbitrarily decided that they are making too much.

I somehow evaded these awful capitalists and bought a house I could afford and put down enough money that I will not default. Besides I pay my obligations. But I would like pay less than I owe also. I have a car that is not worth what I paid for it so while you are at, it please call the dealership and tell them that I want the principle reduced.

By rewarding these bad decisions I am sure the buyers have learned there lessons and will never make another bad decision and will never be back here asking for another hand out.

BTW I have some terrible stock decisions that I may need you to make me whole on.

Regards, Morons

[buckethead]

It's an awful idea.


Except that it is exactly what TARP was, but in support of Mortgage holders rather than Mortgagees.


If you are underwater: RUN (Your mortgage company has already robbed your children via the fed... don't even feel guilty)

Bailouts are for the rich and the poor... not the middle classes.

[JeffreyS]

+1 BH

[MusicMan]

Bill, You are missing one point. The due diligence on all these bad loans was the lenders resposnibility, not the borrowers. They gave out billions in loans that should not have been given out. That activity was driven by greed, mostly on the part of the banks, who made hundreds of million up front in origination fees plus
all the money they collected on interest only loans.  Many of the lenders were bailed out, by the gov and by mortgage insurance. The borrowers simply lost almost everything they had.

[acme54321]

So it was all the lenders fault?  I guess the majority of the population of this country is too stupid to figure out how much of a house they can afford?  It's not rocket science.  I can't even believe that someone would fully blame the lenders on this one, it's almost laughable.

[MusicMan]

So if I go to the bank tomorrow and ask for a loan and they don't verify my income or credit but give me the money, it's my fault? I want whatever it is you guys are smoking.

[MusicMan]

Oh I forgot, the borrowers held a gun to the lenders head and said give me the money or else, right? Is that what happened?

The lenders made two enormous errors:1  not doing due diligence and 2  not having the imagination to concieve that the collateral on the loan might go down in value.

Banks are owned by investors. They owe it to the investors to do due diliogence on the borrower. In millions of cases that was not done.  The contract said "If I cant make the payments you get the house." Tell me where the borrower is at fault simply for asking for the loan.

[buckethead]

I think we miss the point by assigning blame solely to debtors or lenders. It was a mixed bag. Many borrowers misrepresented income and/or believed their income to be more stable than turned out to be the case.

Most lender however, made loans, then repackaged the debt for sale to investors who believed in the ratings of those mortgage backed securities/derivatives.

I loan a person some money and collect a fee, then sell the "debt" to a third party. The debt is rated AAA by ratings agencies effectively owned (paid by) the originators of the loans.(Institutional banks were often leveraged 30/1, incidentally.) The loan originator is now in the black, with all the risk sold to others. As it always does, TSHTF. The people making bad loans, as well as AIG (insurer of bad loans) plus Fannie and Freddie get free money.

Tax dollars? Borrowed Dollars? Printed (devalued) money? It's all the same. Just know that those mad libs screaming about socializing risk while privatizing profits were on the mark.  (Yes... You too, Faye)

[JeffreyS]

NN yes but isn't it typical of business in America nowadays that the big corporate banks have their losses mitigated by the government and the individual is told "your on your own".

[peestandingup]

NN yes but isn't it typical of business in America nowadays that the big corporate banks have their losses mitigated by the government and the individual is told "your on your own".

But of course! Mom & pop, local biz, families & individuals in general no longer own the country, but the banks & giant corporations sure do though. Can't have them fail. Their money & influence goes a much longer way in Washington than Mom & Pop's & the rest of us pee-on's money does.

Oh, and if said individuals try to raise a stink, rage against the machine & walk away?? Yeah, that little system they've set up will eat them alive through trashed credit, garnished wages, lawsuits & all kinds of other fun stuff. All brought to you by the same banks that started the mess & got bailed out with taxpayer money.

We're all slaves.