To Congress:

We, the undersigned Citizens of the United States, demand that you immediately take the following steps to halt the terrible social and economic impact of the housing/banking crisis.

1. Declare a State of Emergency based on Sabotage in cities faced with high foreclosures. This will get federal funding to troubled cities and their residents immediately. This will keep troubled homeowners in their home while protecting the values of responsible homeowners while keeping neighborhoods safe from crime

2. Set-up these federal loans for troubled homeowners on a 1-year term, at a rate of 5%, and have the payment amortized over 30 years.

3. Troubled homeowners who take these federal loans must pay back the federal government an additional $50-$200/month for the next 10 years; and, in return, they keep their home. This will pay back the federal trade deficit roughly $12,000,000,000 over the next 10 years. (just an estimated figure based on one million homeowners)

4. Moreover, with the troubled homeowners making payments on these federal loans and, in addition, paying back the government $50-$200/month for the next 10 years; this relieves taxpayers from some of the financial burden.

5. In addition, declaring a state of emergency will relieve the banks of these bad loans, therefore, allowing the banks to rebuild capital over the next 12 months thus avoiding further write-downs.
A. At the end of the 12 months, require the banks to refinance these state of emergency loans back into their portfolios; and require these homeowners to continue to pay back the government the additional $50-$200/month for the following 9 years. As the home values start to appreciate again, these troubled, homeowners will be able to pay back this debt through their equity, if they wish to do so.

6. It seems like the resources are in place to handle a state of emergency based on sabotage, just as it is when an arsonist burns down homes, therefore this should not be considered a bail-out if positioned accordingly nor should it be a tax-payer bailout.

7. A state of emergency will give federal aid to cities like Chula Vista, where it is having to layoff 10% of its workforce because of unpaid property taxes due to the high foreclosure rate. A state of emergency will give aide to cities like Stockton, Sacramento and states like Florida. This aide will prevent the shut-down of city programs and further layoffs of city employees.

8. A state of emergency will ensure that both local and state agencies have the necessary funds to pay their debt obligations should the foreclosure rates continue to increase. (ie: Chula Vista, Stockton, cities in Florida, cities across the nation).

9. A state of emergency will give small businesses and homeowners the necessary aid to stay in business and keep their homes during this time of distress. More importantly, keep responsible homeowners safe and empowered.