Today U.S. Reps. Gary Peters (D-MI), John Campbell (R-CA) and Keith Ellison (D-MN) introduced the Preserving American Homeownership Act of 2012. The crux of this legislation is the creation of a principal reduction program to allow eligible homeowners to have their underwater properties revalued at a more accurate level. By implementing this program, struggling homeowners could qualify for more affordable monthly mortgage payments which would cut foreclosure rates and strengthen the housing market. And by using a shared appreciation model, taxpayers would receive a portion of future revenues from the sale of the house.
"I'm proud to introduce the Preserving American Homeownership Act to help families facing foreclosure stay in their homes,"said U.S. Rep. Gary Peters (D-MI). "Too many communities in Michigan and across America have been devastated by the housing crisis and we are coming together to address this problem. By giving underwater homeowners that are facing foreclosure the option of principal reduction, we'll stabilize our housing market, protect our communities and ensure that the American Dream of homeownership is there for our next generation."
"The answer to this country's housing crisis is not to sit idly by entrenched in stubborn ideology while the housing market continues to deteriorate," said U.S. Rep. John Campbell (R-CA). "Instead, we must address this crisis by taking steps that encourage homeowners to take proactive steps, while minimizing costs to the American taxpayer. This legislation offers homeowners that meet certain criteria the opportunity to repay and remain current on their loan, which would prevent Fannie Mae and Freddie Mac from incurring additional losses. Fewer distressed homeowners means improved consumer sentiment and a healthier housing market, both of which will positively contribute to long-term economic recovery."
"Too many Americans, including thousands in Minneapolis, have been dealing with this housing crisis for six years with little relief,"said U.S. Rep. Keith Ellison (D-MN). "Any homeowner whose house is "underwater' is struggling and this bill could give them a clean slate. This bill would let families keep their homes and let investors preserve their investment, which would be fair to families, good for our communities, and would contribute to our economic recovery."