- Posted April 29, 2012 by
This iReport is part of an assignment:
iReport Debate: What’s your top issue?
Saving the American Dream: Principal Reductions
In 2006 I was assaulted while showing a home as a real estate broker. The real estate market was already in decline. After months of therapy and recovery my family was stuck inside a jet on the tarmac for 9 hours and 17 minutes at which time I then became a consumer advocate for airline passengers running the most successful grass roots campaign in history. Our home went from a value of 1.5 million to 700,000 in 5 years. We owe 1,000,000.00 on our home. We qualify for a loan modification, but Bank of America draws out the modification process to a painfully slow pace. There was a huge settlement meant to draw down loans with principal reductions, and even though we fit in to that very small number of people that qualify, Bank of America is stonewalling us on that fundamental piece of the issue.
The point is this. If we foreclose B of A will not be able to sell the home for any more than the most recent sale of our model which is 700,000. So why not allow us to stay in our home with a principal reduction to it's true value. We will be able to keep our tax writeoff's which wll put more money in our pockets that we can spend on goods and services which benefits the economy.
The idea that Mitt Romney feels everyone in our situation should simply just foreclose to free up the market is a nefarious argument and simply incorrect. It won't matter one bit whether we foreclose or there is a principal reduction to the bank's bottom line. In fact the faster B of A and other banks can settle as promised with their borrowers, the faster the market will recover.
Neighborhoods will be spared the depreciation caused by a home falling apart for lack of care, or the homeowner gutting the property to re-coup the improvements they have made.
Restore our American Dream Now and tell B of A it's time to stop lollygagging with our lives and do what they promised. Reduce Principal and leave good borrowers in their homes.