I went to a class on the Government Bailout Program today, if you don't know about it here are some hightlights.

Starting Oct. 1st  2008 it takes effect.

If your bank agrees, they give you a loan based on 90% of the CURRENT value of your home and forgive the rest.

Owner Occupied of course but here's the deal breaker ( I think) your DTI can only be 31% say what? yes 31% who in foreclosure has a 31% DTI?

Catch...is if you sell the house in the first year the bank gets 100% of any profit on the loan, year 2 they get 90% of profit and so on until year 5 where as you split any profit with the bank 50/50.

IF banks agree to this loan and the DTI could be adjusted up ( remember most sub pime loans had up to a 50% DTI) this program could work. But I don't think to many Americans are going to qualify for this deal making it another smoke and mirror show by the government