The bailout package presumes that we have seen the worst of the mortgage crisis. That is not true at all. What we have seen till now is bad mortgages of first time buyers with 2 or 3 years fixed and then a big one time payment. The second series was of those who had one house for residence and the other for investment or those who were about to sell one and buy a new one.

What we have not seen yet is what transpired in 2004 and 2005. These mortgages are not first time buyers but of those with good credit who sold their house at a hefty profit and got a good teaser rate of 1% by putting down 20-30%. We have yet to see these mortgages going bad.

What we need to do is:

• Freeze foreclosures for 120 days but the lender starts working on it as soon as possible.
• No re-appraisals on those houses.
• Lender should renew the loan with longer terms and lower rates.
• After accurate qualifications a new 40, 50 or 60 year loan contract should be prepared.
• Allow 25,000 tax credit for first time buyers.
• Place a moratorium on increase of home tax for people selling their house and buying a more expensive house. Meaning that the home tax remains the same as before despite increased value of the house.
• Eliminate stated income and no document loans unless in 60% equity.
• Keep all open home equity or second mortgages at today's wholesale rate.
• Cancel all pre-payment penalties.

Armed forces

It is simple. There is enough money to support the army if it is called back home.

Tax Breaks

To boost consumer spending we need tax breaks on the following lines:

• 10% tax credit on sale price for those who buy made in America cars, either 4 cylinder or hybrid. Further 10% tax break for those earning less than a hundred thousand.
• 10% sale price tax break for those with income of five hundred thousand and above if they buy their first home for residence, not investment. 15% for those earning between 101 thousand and 499 thousand.
• Tax break for two years to manufacturers who bring their factories back to US.
• 10 days tax-free shopping to buy made in America electrical house wares.

How to save money

I don't know the figures for 2007 or 2008 but in 2006 the total US loans and grants to foreign countries was approximately 22.8 billion dollars. This money can help the three auto companies or we could update 2 million home owners that are past due on their mortgages.

Wall Street bailouts

The government needs to be tough on this. If they are getting tax payers money they should be made to submit their accounts to the government for analysis and auditing on monthly basis.

This is my short & sweet stimulus package!

Slicemypayments is a company that provides helpful support to consumers who are looking for financial assistance on auto loans, credit cards, credit report resolution and mortgages. For more information please visit www.slicemypayments.com.

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