tax credit to banks that modify mortgages to current values. Aids homeowners with lower payments and banks clear bad deb

Banks refuse to modify mortgages because on paper they are seen as profitable. even though the banks lose money through foreclosure they are reluctant to do more. If the government would allow the banks a tax credit this year to modify all homeowners that are underwater, this would help homeowners and the banks can clear their balance sheets of bad housing debt that they refuse to clear because of the loss. If the hit will be too hard to the economy because of loss of revenue from the credit allow it to be spaced over a three to five year period.