Experts agree that in order for the economy to recover, the housing market first must be stabilized by preventing avoidable foreclosures. While there is no single solution to the foreclosure crisis, one promising approach is the Principal Paydown Plan, which would provide immediate relief for qualified homeowners in bankruptcy who find themselves underwater on their mortgages. By reducing the interest rate on mortgages to 0% for 5 years, monthly payments would be lowered and every dollar applied to the principal. This Plan would provide help for many American families trying to stay in their homes, stabilize communities, and bolster the housing market and economy as a whole. Developed by the National Association of Consumer Bankruptcy Attorneys (NACBA), the plan is ready for immediate adoption.
The NACBA has been urging the Obama Administration to adopt the Principal Paydown Plan ("PPP") as one meaningful step to address the current foreclosure crisis. Last week the Administration launched an effort to encourage the American public to create, share and sign petitions that communicate views about the government’s actions and policies. We know the Principal Paydown Plan has promise – help us make sure it gets the attention it warrants. You can click here to sign the petition.
*Please note that you must create a whitehouse.gov account to sign the petition, however, it only takes about two minutes to do that. It’s fast and easy!
- An Executive Summary of the Principal Paydown Plan
- A Detailed Explanation of Principal Paydown Plan
- Why We Need the PPP NOW!
On behalf of the NACBA,Thank You to everyone that signs the petition.