It would be a disaster. How would you "freeze" home foreclosures? Tell the bank who is losing money on the mortgage that they must provide a free house to someone who can't pay? Or should the government (i.e. me and all other responsible tax payers) bail out an irresponsible person who got into a home loan they couldn't afford?

The housing market, as weak as it currently may be, is likely to collapse altogether. Don't forget, after the conflicted Chris Dodd and his henchmen hammer out an acceptable program to Nationalize Fannie and Freddie, we have another $58 trillion Credit Default Swaps market right behind it. At that point, staging a moratorium on foreclosures might be the least of everyone's worries.

And how does it make those of us that do make our mortgage payments feel?

I'm actually glad for all the foreclosures in a way. I could tell that our local market was starting to slowly rise and talked to my husband about taking advantage of the low prices to upgrade on a new house for ourselves. We currently own a house that we bought five years ago for $92,000. We found a friend who will rent it at the rate our mortgage will be over the next two years, which is slightly higher than it is now, and then will have the option to buy. This helped to get his family out of an apartment without having to have finances ready right now. As for my family, we have a bit of an odd situation now. I found a house online that I liked and showed it to my husband. It turns out that the house was previously owned by his grandmother and uncle. They sold it a couple years ago for $260,000 and have happily moved on. The house went into foreclosure a few months ago and so we were able to buy it for $170,000. That is actually $10,000 less than what we owe on our current home (we refinanced to make home improvements over the years). The new house is larger with a larger yard and updated features, like a granite counter top in the kitchen. We'd never be able to afford a nearly $300,000 home and we know it, so we would never consider getting that far in debt. Thanks to someone else's mistake however, our family is getting a great home and actually saving money! So if more people would use their heads, there could actually be a lot of turn around and the market would pick up quickly. I don't think it's the governments place to have to bail people out for making poor financial decisions. It is really sad for people to loose their homes, and I do think the banks played a part in getting them in over their heads, but hopefully they will all learn from their mistakes and make more informed and wise choices later.

Not sure what "crisis" you are referring to. If you don't foreclose how can banks and other financial institutions that have lent money stay afloat? Banks are losing money as it is with all the new government regulations and oversights. So would just kill them off. And without credit only the rich would be able to own homes.