On NPR today they spoke of the possibility of Freddie Mac and Fannie Mae offering principal reductions at last. My friend who works at Citibank in the modification department has been giving these out to lots of people who have loans not affiliated with these two organizations, as have other mortgage companies. I have been patiently waiting for this to be resolved on a national level and yet, even if it happens tomorrow, I won't be eligible. So, as of today, no more mortgage payments until I get a modification that includes a principal reduction. Of course I say that but, like most Americans, I am conditioned to pay my bills when they are due. If these principal reductions were done properly, each loan would be scrutinized and the ones that legitimately warrant a reduction could be set aside and the owners could apply to be included in the program. As it is, unless you are behind in your payments, you won't be able to apply. This is not something I have idly considered, there are 11 million Americans in the same boat with us. Once this is in place, the whole economy will be on it's way to renewal. We as a nation cannot continue to try to recover while so many people are stuck in an untenable situation, neither in an ownership position or in any shape to walk away. I don't think people who are not in this boat can imagine the stress and pain that this has caused so many in the same situation. Of course, even if we get a reduction, it won't really put us back to square one. Since we put so much down, unless we stay in one place for another ten years or so, we'll never get that back. At least, with a reduction to market value we could maybe sell it and make a little bit and be able to do something else, not languish in a place that has turned slightly sour on us. This is not a good place for anyone to be, and it makes me wonder if it can ever get better. We'll see in the next few months whether the two largest mortgage backers in the country step up and participate. The man in charge didn't agree with concept before and is only now being persuaded by incentives from the federal government. So if tax payer money is used, some would say it isn't a good thing. Looking at the bigger picture, even if you are not upside down on your particular mortgage, the whole sad real estate market will never get better without something like this and your house will never go up again, or go up so slowly, that it won't continue to be a good investment. People like me are never going to "win" with this, we just may be able to come out of it a little less badly beaten.