U.S. Rep. Kathy Castor has written a letter to Treasury Secretary Timothy Geithner, outlining her recommendations to combat the housing crisis.
 

Castor has held three foreclosure assistance workshops and has heard from more than 1,000 families about how the economic crisis is affecting them. Based on those conversations, Castor is urging more direct help to homeowners.

“While some lenders are proactive, many are not helpful,” Castor wrote. “It is too piecemeal. Families are falling through the cracks due to no fault of their own. The housing market and the larger economy, including the wealth that families have built in their homes, is imploding. The dire circumstances demand bold, comprehensive action.”

Among Castor’s recommendations:

* Move immediately on a $100 billion plan to write down mortgages. This will directly help struggling families.

* Increase the number of direct loan servicers/ loss mitigation personnel and provide significant emergency funds to HUD-approved housing counselors. The expanded service should be provided only to homeowners of homesteaded, principal residences. This will enable homeowners to get the assistance they need to work on their mortgages.

* Reform the Hope for Homeowners program and expand neighborhood stabilization grants.

* Enable HUD personnel to be more involved in helping homeowners. Require a large-scale marketing and education effort.

* Urge adoption of a change in bankruptcy law that permits judges to consider and modify a family’s foreclosure situation during a bankruptcy proceeding.

Click here to read Castor's letter to Secretary Geithner.