Peter Schiff has a way to avoid losing your home in foreclosure...

It's called " Stop Paying and Let the Feds bail you out". In this article from the San Diego Union-Tribune,"Just stop paying your mortgage", published October 10, 2008, Peter Schiff tells you how to do it (Fair Use claimed.).

http://www.signonsandiego.com/uniontrib/20081010/news_lz1e10schiff.html

One might think the way to do it would be to make sacrifices and catch up or let the bank take the house? Peter Schiff (son of Irving Schiff, tax dodger and felon) says that's plain foolish:

If your mortgage does become the property of Uncle Sam, the growingly popular impulse to “just walk away” should be replaced by “just stay and stop paying."...After ... living payment free [for an extended period of time], you will get a call from a motivated government agent eager to adjust your loan ....

How to make sure that Uncle Sam will help one "fix" the problem and let one stay in the home? Plead poverty...

To bolster your bargaining position it will help to be able to claim poverty. As a result, if you have any savings, spend it soon, before they call.

Brilliant! Spend down your future. That includes getting an equity loan (if one still has any) and spending that money.

What NOT to do with that money? Uh, paying one's other debts seems to not be "Job #1:

If you do get the opportunity to live for a while with no mortgage payment, don't make the tragic mistake of using your extra cash to pay down your credit cards. ...

The idea here, according to Schiff, is to drive up the default rate so much the Feds will bail out the credit card issuers, too.

Huh?? A "bailout" for the credit card companies? Don't think so, really. What would happen instead is a LOT more calls from debt buyers' collection agencies, collection lawsuits, and findings of fraud on creditors. C'mon, do you think the Congress really would see credit card defaults in the same light as mortgage defaults? The "American Dream" Congress panders to is NOT "two chickens in every pot, two cars in every garage, and at least two credit cards with available balances in every wallet".

In short, while there is a really big risk of being voted out in the next election if people's homes are threatened too often by foreclosure, the same cannot be said for other types of loans.

As Schiff says the Government is between a rock and a hard place: Either they won't be able to buy the assets at a deep enough discount to be able to keep the banks from going broke, or the Federal Government will save the banks but sink themselves.

Not that this attempt at saving the situation will do more than cost the taxpayers big money:

[L]ook for the number of troubled assets to swell. ... $700 billion merely represents the first installment ...[The Government's] latest attempt at market manipulation will only result in making a terrible problem far worse.

Indeed.