<html><head></head><body style="word-wrap: break-word; -webkit-nbsp-mode: space; -webkit-line-break: after-white-space; "><h1 class="txttitle">Hope for Homeowners</h1><p class="txtauthor">By Van Jones, Reader Supported News</p><p class="date">03 July 12</p><div> <br class="webkit-block-placeholder"></div><p><img src="http://readersupportednews.org/images/stories/alphabet/rsn-D.jpg" border="0">o you remember when buying a home was a part of the American Dream?</p><p class="indent">Jaime Gonzalez does. It was that dream that encouraged
the retired state police officer and his wife, a retired nurse, to
purchase their home for $150,000 in Oviedo, FL in 2004. With 3 children,
6 grandchildren, and one great grandchild, the house was part of their
dream for the future.</p><p class="indent">They pay $1,493.53 towards that dream every month. Of
that, only one hundred dollars goes towards their principle, the other
$1,393.53 all goes towards their massive interest rate of 7.5%.</p><p class="indent">So why doesn't Jaime, and the millions of Americans
who are in his position, refinance? Jaime's mortgage company refuses to
let him, and regulatory barriers are stopping him from finding another
bank to take advantage of today's rock bottom interest rates. Meanwhile,
banks continue to rake in billions of dollars every year off of
homeowners.</p><p class="indent">Like most folks in Florida, their home is worth tens
of thousands of dollars less than their original mortgage. That means
selling isn't even an option.</p><p class="indent">This month, Congress - including Gonzalez's Senators,
Marco Rubio (R) and Bill Nelson (D) - has a chance to help. A package of
three proposals currently in the Senate would make it easier for
underwater homeowners like Jaime to refinance.</p><p class="indent">With one in three homes, more than 15 million homes
altogether, currently worth less than their owners owe, it's a
full-blown crisis. These folks are underwater and they are getting
socked with sky-high interest rates. They're suffering through sky-high
interest rates with no way out and no hope of putting a dent in their
debt.</p><p class="indent">The banks that got us into this mess, meanwhile, are
putting up barrier after barrier to keep homeowners like Jaime from
refinancing to the now much lower rates. Refinancing could help 11
million Americans stay in their homes by saving them on average $2,500
per year.</p><p class="indent">It would be a real help for Jaime. He's been trying to
refinance his home loan to get a lower interest rate, but the bank
hasn't budged. For now, he and millions of other Americans are just
getting by. Without Congress' help, how long will that last?</p><p class="indent">Congress must take action.</p><p class="indent">Of course, this is just the first step. In the long
term, we must fight for widespread relief for homeowners from the burden
of unfair debt. This means a swift and thorough investigation into
mortgage fraud by banks and lenders responsible for the crisis, as well
as large-scale, direct principal reduction to reset loans to fair market
value.</p><p class="indent">But as a first step, this is a vital lifeline for
millions. It's the biggest proposal to come out of Congress in a long
time. And it has a real chance to pass, even in today's dysfunctional
political system. There are those who will block this proposal, and it
will be very clear that they are choosing the side of big banks and
lenders over everyday Americans.</p><p class="indent">I sincerely urge Senators Rubio and Nelson - and all
those who represent the millions of underwater homeowners in this
country - to choose the right side.</p><p><em>Van Jones is co-founder of Rebuild the Dream, an organization
pushing for widespread homeowner relief through its nationwide "Hope for
Homeowners" campaign. Learn more and add your name at <a href="http://www.RebuildtheDream.com" target="_blank">www.RebuildtheDream.com</a></em></p></body></html>