An example of this transaction is as follows:

- Original Mortgage(s) $200,000 - Current Property value = $180,000 - Homeowner qualifies for a new $153,000 FHA first mortgage (up to 85% LTV, to include closing costs and FHA insurance premiums), with existing servicer taking a $47,000 (plus amount of closing costs and FHA insurance premium) shared appreciation Appreciating America second mortgage. - Current Mortgage holder(s) get immediate return of $153,000 - Balance of $25,400 that servicer is owed becomes a shared appreciation Appreciating America loan, secured by the property but with no payments due. Interest would accrue at a reasonable rate (6%) - Property appreciates 3% per year over the next 5 years and is appraised at $209,000. Borrower qualifies for a new FHA mortgage of approx. $203,000. The home value increase of $56,000 would be split in this manner: homeowner: $16,800 and second mortgage holder: $39,200. The remaining principal balance owed on the second mortgage plus any accrued interest would be forgiven at that time

The time is growing short and we need to act fast. The Office of Thrift Supervision suggested a variation of this but included a new, untested feature that will absorb precious time in rolling out. Appreciating America works and works well. Debate is a great thing but not when it comes at the expense of millions of homeowners. Let's not talk about bail outs until we provide bootstraps and solutions.

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