help to reduce forclosures by supporting principal reductions on home loans.

I think the administration needs to help those homeowners who bought homes the right way, by putting 20% down and not getting bridge loans for our down payments or ARMS. Some of us refuse to walk away from our homes, that we invested most of our saving into even though our home values have dropped by up to 60% especially in my home state of AZ. By having the banks reduce the pricipal to what the home is valued/appraised at now, not only would it help to prevent foreclosures, it would also help reduce short sales, which in turn would prevent homes prices from continuing to fall and no incentive for new builds. Another benefit would be lower house payments, would free up more money to spend on other durable goods.