Jim,

The bailout plan is a joke.  Not only will it not have the desired impact but it will severely injure the mortgage industry.  1) the 'freeze' will only postpone the inevitable.  If those folks in risky mortgages can't afford their homes today, they are not going to be able to afford them tomorrow or in five years.  While we're bailing these folks out, maybe we should start a fund to reimburse all the folks who lost money playing the lottery, horse races, bad car loans, credit cards, etc.  If you had the wherewithal to sign at closing, then it's up to you to get yourself out of trouble.  2) mortgage loans are backed by mortgage backed securities... If investors lose confidence in MBS's, there won't be any money for even the most credit worthy buyers. 

Jim,

Just another band-aid for the wound..if they really want to bail out those who need it would be to relieve them of their debt or give them back money and redo the loans so people can pay the payments and stop foreclosure. I also believe some of them who can still make those payments are now taking advantage of saying they can't....but now they will have to prove it.

I agree...in Illinois, we also use attorneys at the closing table to go over the financing documents. There are no excuses for not knowing what you are asked to sign IMO. The politicians are trying to say that these borrowers were all hoodwinked (and maybe some were, but not all or even most)...I think the borrowers need to assume some responsibility for bad choices. It is explained to them by the lender, and if not by the lender (maybe the lender was unscrupulous) then by the attorney...the truth is, the borrowers wanted that house and were willing to sign whatever to get into the house. I don't know what the answer is, but this just doesn't seem workable. There's got to be a better way.

Fairbanks, Alaska Realtors Jesse & Kathy Clifton I agree, then we will have a postponed disaster.  It will create a confidence issue, nad that will lead to even tighter credit! Who knows maybe the politicians want to postpone the events of foreclosure until after the next election?

Neal Bloom-Realtor ® Assoc.-Weston Florida I agree, it is like putting a band-aid on a dead person!  Since they will never do a rescission of the deal.  In Atlanta I heard of a young woman that received a loan on a 80K condo while earing only 11K a year.  She was able to make only one payment.   I Doubt she will be able to get current.  It was fraud!

Kelly Sibilsky ~ Lake Zurich, IL RE/MAX Real Estate Agent  Thanks for your comments!  I fully share your thoughts!  I want things to get back to normal ASAP, but a bailout of losers?  No!

Jim, the only thing that makes any sense to me is to prevent borrowers from paying escalated interest rates for some kind of grace period.  Unfortunately, some folks see their interest rates climb from 5% to 9% after their ARM matures.  That makes a big difference to their monthly payment.  Of course they knew that going in (if they read their contract with the lender) but if it makes the difference between them losing the home and not losing it . . . do the lenders really want to own homes?

Ed DeChristopher, CRS©,Fredericksburg VA  Ed, but if the loan is already signed off on...wouldn't that be running interferrence with a contract?  What about a person that is current on a mortgage for 7 years, has decent equity and develops cancer.  They then start to fall behind in payments due to medical bills, prescriptions etc...?  Do the companies cut them a break?  Will they do it for 5 years?  I fell the loans are legitimate, and unless we want a total credit crunch -see what they can work out.

Jim,

That's exactly at stake here, many people are not being held responsible for their actions. And they should be. Those who are doing everything to find ways to make payments are being punished. Wrong move by Washington. Just a bunch of political posturing.