There is a "silver bullet" to solve the housing crisis and the economy, capitalism.
1- The American Dream is buying a home to live in BECAUSE of the known and implied guaranteed that personal wealth is built as the mortgage is paid down. If you owe more than the house is worth, the responsible decision is to cut your losses by defaulting protecting your own personal financial future, capitalism.
2- The investors will continue and have lost millions of dollars in guaranteed losses from the difference between the lowered distressed sales price of negative equity foreclosures and the higher outstanding mortgages due, a risk of capitalism.
3- Wall Street made a capitalistic business decision to change the standard mortgage clause and operating practice of "don't pay be foreclosed on" to "let me modify you, if you have negative equity, by giving a financial benefit/incentive to the negative equity homeowner of a lower payment or a principal reduction to remain a negative equity homeowner instead of defaulting to avoid the investors' guaranteed financial loss proven by the CAPITALISTIC REQUIREMENT of a positive net present value(+NPV).
4- A positive net present value occurs if it is financially better for the investor to give the homeowner a financial incentive to remain than having to automatically lose a guaranteed portion of their capital investment with a foreclosure. Stipulations of financial hardship or affordability does not change the guaranteed loss to the investor that occurs with ANY negative equity foreclosure NOR does the amount of financial loss to the investor change based on the homeowners personal financial status which is proven mathematically by a +NPV.
5- The legal consequence of changing the standard mortgage contract clause of “don’t pay be foreclosed on “ by modifying over 6 million homeowners to avoid the investors guaranteed negative equity losses created not only MORAL HAZARD but a legal precedent entitling all similarly situated parties to a consistent similar financial incentive based on the law of the land.
*Sign the Unitedinprosperity.org petition to stop the illegal "misrepresentation" that affordability is why a modification is issued allowing the holdings of the government and Wall Street to violate the principle of "honest and good faith dealings" using "predatory mortgage servicing practices" and "unfair and deceptive business practices" by taking "undue financial advantage" of over 10 million similarly situated (negative equity) homeowners who are paying or can afford to pay by restricting or denying them the same moral, ethical and legal entitlement of consistent and similiar financial incentive to remain a a negative equity homeowner violating numerous consumer, banking, civil, tort and business laws to maintain Wall Street's anticipated profits leaving the economy in financial limbo.
* Sign the Unitedinprosperity.org petition for a true Change We Can Believe In by giving every negative equity homeowner, current or delinquent across the board the same modification based on a capitalistic mathematical net present value formula creating over a six billion dollar monthly stimulus that does not come from taxpayers.