My suggestion based on over 15 years of Banking experience as a Branch Manager, 6 years experience as a Realtors, 16 years experience as a Real Estate investor, and almost 2 years talking directly to homeowners losing their homes because of this situation is to do the following:
Reduce the interest rate on all mortgages to owner occupied residence to a flat rate of 6%. This will save the average homeowners $200- $500 per month. This will help in allowing people the opportunity to stay in their homes and still be able to put gas in their cars and food on their table.
This Financial crisis is because people are unable to make their mortgage payments. If you help these people on Main Street it will reduce the number of foreclosures and reduce the number of non performing loans in the banking industry and free up money for banks to make additional loans.