Contact your Senator or House Rep to provide financial support of HUD to expand Section 8 voucher program to cover homeowners facing foreclosure. This will immediately and cost effectively restore credit of American financial systems. Why?
1. Subprime mortgage problem due to many American families not able to pay their mortgage on time. With expanded Section 8 program cover, only 30% income used for mortgage payment, Section 8 voucher cover the rest. Doing so will immediately restore the value of all mortgage back securities, and all derivatives involved, so are stock value of all banks and financial companies. It will also immediately removes millions of homes listing for sale on the market, and, therefore, stablize the housing value.
2. This will be temporary and limited as general Section 8 program did because the amount of voucher will reduce as time goes when the family income increases to be able to pay the mortgate all by themselves. Besides, homeowners grappling with mortgages for their own residences represent a far smaller percentage of the overall mortgage crisis. And, if these families were to be evicted and become homeless, HUD would still have to handle the problem thru Section 8, may be paying more on Section 8 voucher.
3. The Section 8 worked since 1974 that the vouchers will flow from families under foreclosure, to mortgage holders, to banks and insurance companies, and eventually generate lots of tax back to the government. The cash will flow many more hands from Main St to Wall St and generate huge economic gain.
4. There is no need to rewrite nor renegotiate any mortgage contract, prime or subprime or any type; credits in all levels and securities will be restored immediately.
If you love this country and would like to help, you want to act now. Be creative and innovative, if you can not reach your House Rep or Senator, try your mayor or governor or your realtor or broker, or forward this to all your friends and colleagues.
Wednesday, October 1, 2008
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