So, let's see . . . if the loan modifications result in millions of dollars of losses that trickle down to the retirees who lose their source of income (and perhaps their housing, or ability to take care of themselves), then the politicians are simply overlooking that impact of tis "bailout for people who bought homes that hey could not afford.

I, for one, am on the side of the retirees, many of whom are not able to "go back to work", or who been out of their industries to return to decent paying jobs.

When it comes to a "choice", I say let those who bought more than they could afford go bankrupt and be foreclosed on. That seems to be fair and equitable than foisting the costs of their defaults onto others. (And so far, 30% of those who have been "bailed out", eventually went into default AGAIN.)

The outstanding mortgage loan amounts should not be reduced. Instead the loans should be extended to 40 or 50 years to spread out the payments due over a longer period of time, which would lower the monthly payment to help prevent foreclosurers.

This lawsuit is without merit. While investors are entitled to the agreed proceeds, they aren't entitled to compensation for loss of value of the underlying assets absent a specific guarentee to that effect. Intermediaries who manage those assets (loan processors) have a fiduciary duty to those investors to protect the value of those assets to the best of their ability. The real question is whether the loan modifications are in the best interest of the investors. The investors have a right to challenge loan processors specific actions on that basis, and the judge should decide such decisions based on the facts and circumstances. The onus is on the plaintiff to prove that the loan servicers' workouts were not in the ultimate best interests of the investors.

Bruce Hahn

President

American Homeowners Grassroots Alliance and

the American Homeowners Foundation

Serving the interests of the nation's 75 million homeowners and future homeowners since 1984.

The American Homeowners Grassroots Alliance is a nonpartisan consumer advocacy organization dedicated to assisting the nation's 75 million homeowners understand significant policy issues affecting homeowners and homeownership, and empowering homeowners to make their voices heard by state and federal officials.

The American Homeowners Foundation is an educational and research foundation providing information and tools to help consumers make wiser decisions when they buy, sell, remodel, finance or invest in homes.

Visit our web site http://www.americanhomeowners.org. Contact us at: 6776 Little Falls Road, Arlington, VA 22213-1213. Direct Dial: 571-214-1013; Headquarters: 703-536-7776

Let the owners modify their mortgages. If they dont and foreclosures those retirees lose their income anyway so let them eat dog food

What do you tell the person who was a productive worker, refused to pay absurd real estate prices, lived frugally, saved money to someday buy a home AND has to rely on a pension fund in their old age?The world has been turned upside down and all of the worst behaviors are being rewarded. The powerful concentrate on puffing them selves up at the expense of average folks. Don't you need a healthy, stable, sane, productive work forces to be safe in your mansion? Laws and regulations MUST be enforced and corrupt officials put in jail. Greed is not viable. The dogs laid down together and now they all have fleas and even the house is infested. I never drank the kool aid.

RE: Bruce Hahn's comment: "The onus is on the plaintiff to prove that the loan servicers' workouts were not in the ultimate best interests of the investors."
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That is really the crux of the issues: "What is in the best, reasonable interests of the stock holders?" Those "homeowners" who cannot qualify for a 30 year fixed rate mortgage should go into foreclosure. The investors (stockholders) will have to suffer the losses of however this all works out.

A critical question is: "Who is responsible and should be liable for the frauds that have been committed?" The answer is that it is such a complex, systemic failure that it involves just about all of the parties that have been involved . . . but it all started with Congress' willingness to not provide the necessary "oversight and regulation" to maintain the integrity and stability of our economy. Congress' failure to perform their fiduciary responsibilities enabled the FIs to create the pyramid and Ponzi schemes; and then it became a "trickle down" process.

Too many Americans were too gullible and greedy; and bought into these scams. Just like the conditions that created the Great Depression, too many people became convinced that they could "get rich quick" or buy homes that were far beyond their means with little or nothing down.

The reality is that the government really doesn't care about the homeowners; they are merely trying to keep the economy functioning. "Saving the homeowners" is merely propaganda to get the average Americans to sympathetically go along with whatever the government does. This is demonstrated by what the government has done so far with the bail out monies . . . . the government is trying to save the failed FIs in order to keep our national fiinancial infrastructure in place; everything else is "secondary" to them. This winds up "supporting" thoses CEOs and corporations who created the pyramid and Ponzi schemes . . . and these CEOs have basically kept their obnoxiously excessive salaries and "other compensations"; and are still running most of these corporations.

As I see it, the CEOs of the failed corporations are the primary individuals who should be indicted and prosecuted for malfeasance. They oversaw the orchestration of these fraudulent and financially unsound schemes that have defrauded so many people.

Countrywide is a typical example of what happened throughout our corporate world and in the mortgage industry. It is time to resolve the losses, and let the chips fall wherever they may fall to minimize any further losses. A lot of people/families are going to be hurt because of their irresponsible actions; but now thoses losses are being expanded and spread to more "innocent individuals" who did not participate in the "greed". We're all going to be economically hurt by what has happened, that is unavoidable.

People need to wake up and realize that our Congress is the primary culprit in these debacles . . . Congress did not do their job; and they enabled this entire set of debacles to occur. Amazingly, 95% - 98% of the people have virtually no idea as to what their Congressional representatives have done or do in regard to these matters.

You may detest politics and politicians; but you cannot avoid the impact that politics has on your life . . . you owe it to yourself to protect your own best interests by pressuring your Congressinal representatives to do what is in the best interests of our nation.

If our government wanted to solve our realestate problem and boost our economy it is very simple.first,instruct anyone who carries a mortgage on a piece of property in the united states to reduce the interest rate to 5 percent.this would take so much pressure from homeowners and leave them in their homes. this would not cost taxpayers any money.the result of this would put an enormous amount of money back in thier hands to put back into our financial well being