U.S. tries to reduce more homeowners' mortgages | Reuters

U.S. tries to reduce more homeowners' mortgages | Reuters: "(Reuters) - The Obama administration wants to help more struggling Americans stay in their homes by reducing the amount they owe on their troubled mortgages, a top Treasury official said on Saturday.

'We are very definitely trying to facilitate more principal reductions,' said Timothy Massad, Treasury's acting assistant secretary for financial stability. 'It is a very important piece of the overall solution,' he said.

The administration is trying through taxpayer-funded programs to prevent homeowners from losing their homes. Nearly $50 billion has been set aside from the $700 billion bank bailout known as the Troubled Asset Relief Program, or TARP, to help distressed homeowners.

Persistently high unemployment and a weak housing market pose a threat to President Barack Obama's re-election prospects next year."