Citibank called and offer us a loan modification on our home which is underwater in equity by over $300,000.00. We are not late on our payments. They offered to lower our interest for two years to 4%, then after two years, raise it again to 5.85% and extend it 40 years.

If we agree to this, it will give us relief for two years, but in the long run we will be paying over $1,000,000.00 more for a house that has lost it’s value.

I guess the buyers are the ones who lose in this housing slump, because the banks don’t seem willing to absorb any of the responsibility. While they get bail out money for their irresponsibly mistakes, the consumers are made to feel as if we are the villians in this meltdown.

How about a real compromise? How about taking the risk of sharing the loss and building back up together?

Just a thought.