In a long overdue settlement, the U.S. Department of Justice announced a $17 billion settlement with Bank of America for its role in causing the housing and mortgage crisis [“Bank of America settlement likely to benefit few,” Business, Aug. 21]. As a city resident with a Bank of America mortgage who is facing foreclosure, this is a crisis that I know all too well.
In Seattle, the Reset Seattle Coalition is pushing for a program to reduce principal on underwater homes in the city. Similar programs are already helping homeowners in Oregon, Boston and other places. Luckily it appears some of the Bank of America settlement monies are earmarked for just this purpose. In the settlement, banks can get credit for selling mortgages to municipal or non-profit programs that reduce principal. I urge the city to take action now.
Betsy Andrews, Seattle