To: President Donald Trump, The United States House of Representatives, and The United States Senate
Stop ALL Foreclosures
To save the economy and the people from the second and inevitable collapse of the Housing Market the President, the Fed and the Congress should stop pretending that asking or encouraging the banks and Fannie and Freddie to write down the values of their held mortgages and instead, order the cessation of ALL Foreclosures on mortgages under $729K whether they are distressed, current, in default or underwater, for a period of 12 months. This should be an ORDER and not negotiable. Real Estate taxes should continue to be paid and interest deductions would of course be eliminated for the 12 month period. At the end of the period, the 12 "missing months would be added to the end of the term of the mortgage. This will free up billions of dollars for use instead of Corporate Profits on Wall St. And BANKS already did this for their OWN protection for several months to avoid prosecution.
Why is this important?
There are nearly 4.5 Million homes which are at serious risk of being taken by the banks. Most are underwater. The FHA, VHA and the Fannie and Freddie owned mortgages are not allowed to be modified. It is time to realize the Bailout was pointed at the wrong people. If Foreclosures were stopped for 12 months on all mortgages under $729K, the financial boon to the economy would be phenominal. Taxes for the real estate would still be paid - helping the states and towns, and there would be no interest deduction so the tax revenue would most lkely go up. 12 months of having the mortgage payments available for job searches, gasoline, food, repairs, and purchases would far outstrip the payroll tax cut and cost NOTHING to anyone - even the Banks will find a way to write this off. The banks were happy to do this on their own for several months when they were threatened by the SEC for Robo signing.