Those few of us paying attention can discuss loan modifications, principal reductions, re-fis, etc. However, all of it is meaningless until two things happen: 1. The banks (hey, they're people, too) must be prosecuted for breaking state and federal laws too numerous to mention. In addition, the banks that falsified documents, separated notes from mortgages, etc., need to work backward to ensure there's a clear, unclouded title to every property they financed or foreclosed on. I wouldn't buy a house now on a bet because it is impossible to get any assurance you're buying an unencumbered property. Even title insurance companies now routinely insert small print saying their liability is limited and the insurance is issued based on info provided to them by the banks ... banks that have no idea who owns what. 2. America could clean up the housing mess, rebuild its economy and create millions of new jobs if American citizens took their civic responsibility seriously and voted for local, state and federal representatives who are serious about representing the best interests of their constituents -- not their own best interests. Sadly, I'd guess a significant number of citizens most damaged by bank fraud and the economy couldn't name their Congressional Representative, much less tell you how many Senators their state sends to Washington. Yes, honest, hard-working people have had their lives destroyed. Yes, honest, hard-working people who played by the rules, saved money, lived below their means and so on will see no benefit from any mortgage relief programs. Yes, we all agree -- life is not fair. But.... The solution is at our fingertips. All we need to do is exercise our civic right / duty and vote in November. But our votes must be informed and based on an in-depth understanding of the candidates and what they really stand for. If you vote based on party lines, sound bites or what your friends tell you -- then you're unAmerican, not patriotic and, indeed, as Michele Bachmann suggested, you deserve to be investigated for unAmerican activity and convicted of treason.

My husband and I do not have an underwater mortgage, but we are still suffering because the value of our house has dropped so much that we cannot reasonably sell it. Why should we not get the same benefit of having our mortgage reduced to fair market value. It seems like it penalizes those of us who have invested more in our homes.

Do I misunderstand? Are you proposing that ALL mortgages, where more is owed than the house is worth would qualify for a principal reduction even if the owners could afford to pay their mortgage? If so, this would be shameful. If we are talking about a different scenario where faulty mortgages were written by banks and/or mortgage companies for people allowing them to go into debt for houses when the banks knew they would not be able to make payments perhaps that is different. I do not believe that the changing value of the house should be the deciding factor. House values change all the time with economic circumstances. I believe that your win-win solution may be faulty and definitely needs more explanation.