One in five Americans owe more on their mortgage than their home is actually worth. Collectively, underwater homeowners will have to pay down $709 billion in principal before they can start building equity in their homes. Every effort to reboot the housing market to date has failed because it has not done the most essential thing: reduce the massive debt load carried by underwater homeowners.
- 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-- This includes $12 billion dollars per year in Florida, the second of the two states hit hardest by the foreclosure crisis.
- Save the average family over $500 per month on mortgage payment
- Solve the foreclosure crisis once and for all
“Homeowners across the nation are struggling to pay their boom-era mortgages with their recession-era salaries and the economy is suffering for it," notes the report. "Writing down the principals and interest rates on all underwater mortgages to market value would serve as the second stimulus that America so desperately needs, only without added costs to taxpayers.”
As the banks have been able to profit from millions of people losing their homes,"The Win/Win Solution" demonstrates that the banks can afford to execute this plan. Last year, the nation’s top six banks paid out more than twice the cost of the plan ($71 billion per year) in bonuses and compensation alone ($146 billion in 2010). Currently, the nation’s banks are sitting on a historically high level of cash reserves of $1.64 trillion.
To help us prioritize our communities and our families and start rebuilding a working economy, join with us to demand that our state Attorneys General make principal reduction on underwater mortgages a key part of any foreclosure settlement with banks.
You can also click the map below to see how your state ranks in underwater mortgages and revenue lost per year due to underwater mortgages. You can also see per state how much revenue and how many jobs would return to your state if interest rates were reduced.
To read and download, the full report click here.
Wake up America,the press,the TV shows are quite about it because the TRUTH IS OUT 1 ,it was more than $8 Trillion!!!
Read US SENATOR Bernie Sanders blog “A REAL JAW DROPPER AT THE FEDERAL RESERVE” He had the FEDS audited and show amounts and who got what from “behind closed doors”
YES over $8 trillion was printed.
When the $9 billion in loans loses 60%,that is $5.4 billion of which they have deposits of only $1 billion (They would have to return that as well)
It would put them in receivership.
Ther is a way out,and as your proposal states,The housing crises MUST be resolved.
But we need to get the foxes out of the hen house !
Also spending for housing maintenance would skyrocket because of the withholding over the last 4 years of the average 2% for existing homes-that is what is needed just to bring them up to par.
BUT IT IS JUST A DREAM ! !
As Einstein said,“Make it simple”…It would put them in receivership
because they do not have the money needed to reduce the “toxic loans”
which may have been leveraged as high as NINE fold.
The bank s “printed” the $2 trillion to make the loans.They actually take $1,000,000,000 (1 Billion) in deposits and since the may factor with a (10% reserve) a loan for $900,000,000.When they make the loan for $900 million they show that as an asset and therefore they can make other loans for $810 million and on until the $1 billion is the “cash available in deposit for loans that amount to $9 billion.
WHAT CAN THE BANKERS DO BUT GO BELLY UP,when the $9 B loses 60% of it value ,i.e.,$5.4 billion and they only have deposits of $1 billiob—-WHICH IS MONEY THAT DOESN’T EVEN BELONG TO THEM!
As De Soto says,”This could be a Quadtrillion dollar problem"
But there is a way out,it’s just that the foxes won’t let us do it.