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In addition to foreclosure prevention and community Organizing, ESOP uses the practical experience gained from helping homeowners and organizing in neighborhoods and puts it to use in advocacy efforts. We urge local, state and national officials to implement common sense financial standards and regulations that give everyone fair access to credit, housing and financially stable communities.
Of the 55 million mortgages in America, more than 10 million are reasonably likely to default, largely because so many homes are worthless than the mortgage balance. That is, they’re underwater.
The nearly $700 billion mortgage debt overhang is holding back the recovery of the housing market and broader economy.
The only way to change the imbalance between the size of the mortgage and the value of the home is to reduce principal balances.
Yet FHFA—which regulates Fannie Mae and Freddie Mac – refuses to allow principal write-downs as part of their modifications, which cuts out about half of the mortgages in the United States.
FHFA’s own analysis found that write-downs for all severely underwater borrowers would actually save Fannie and Freddie—and the taxpayers supporting them—about $20 billion over the life of those loans.
Still FHFA Director Edward DeMarco would rather be a bean counter than a leader as he stands in the way of the recovering economy.
Don’t sit by and let bureaucrats and bean counters destroy the American dream of home ownership!
Get involved and take action to get principal reduction used to keep families in their home and improve the overall economy.
CALL Ed DeMarco at 202-414-3801 and tell him you, a taxpayer, want him to reduce principal on underwater mortgages.