Well this is what McCain is proposing to do if I heard him correctly. Listen, if the fed is putting money into the money markets it can keep peole in thier houses.

Would it work is a fair question.

But - it's an impossibility. Paulson would NEVER give back the money that he has the right so spend. I don't believe Congress has the courage to recall that law and pass a substitute.

But I would not put it past Congress and the administration to come up with a compromise that would be catastrophic to the vast majority of Americans.

Here's what could happen:

1) Paulson buys mortgage debt, paying far too much.

2) The plan you describe is implemented and many Americans get a huge break on their mortgages.

3)By reducing the value of the the mortgages, the securities that Paulson is buying in our names become worthless. Thus, we over-pay upfront for the securities and then destroy the value of the securities. Thus, we have worthless mortgage paper at the back-end.

Result: Some homeowners reap a bonanza - some deserve help, but many were just too dumb in the first place and are undeservedly being made whole, while the rest of us lose our share of the $700 billion that evaporates.

I understand the problem that some people shouldn't have bought the homes they now live in. If they can't qualify for a new mortgage at the current value, they shouldn't get this deal. I don't think this idea hurts those who have been honest and paying their mortgages. Because it brings the value of homes back to reality and stops the decline. It actually helps them.

And no, it's not what McCain said. He was woefully short on specifics.

This sounds too good to be true because it is. McCain irresponsibly threw this comment out there with absolutely nothing to back it up. How would you decide who gets their mortgage bought out? My neighbor, but not me? That's not fair. This country couldn't possibly afford to buy out every American's mortgage. It was a stupid comment, and it's unfortunate the debate moderator didn't call him on it, and people actually, sadly, believed him. Lenders made billions off the Americans by overselling them loans they shouldn't really have qualified for based income ratios. Those bank executives made multi million dollar bonuses, while we all lose our savings.

The banks got what they deserved, made made a bad business decision - too much risk. Unfortunately, the government let them get away with it because they didn't regulate them as they should have. So millions have lost jobs and money in the process.

Unfortunately, there is no easy fix. The house of cards we've been building in the credit markets for the last 8 years fell, and everybody suffers.

It is a decent idea. I heard a slightly different version. Gov't buys the foreclosures. Discounts the house 10% and opens bidding. The homeowner could buy as could others. It it doesn't sell then the next month the price drops 10% and open bids again. There
would be a limit on how many homes someone could buy, like 2 max.
This would allow people currently shut out to buy in. Distressed homeowners could buy their house at a reasonable price. The housing market would return to acceptable price levels.
And Susan, these plans are for foreclosed properties only. No one with equity would want to participate because they would lose whatever they have in their home.
Nothing like this will ever fly. Paulson and Congress want to control the money.

A way to stay in your home is by a mortgage loan modification. Recently, I decided I needed to get help from a loan modification program. I was down 4 months on my mortgage due to the loss of my income. After 23 years on my job, the company shut down leaving thousands of us out of work. I went to 21st Century Legal Services voted #1 in best loan modification company's located in Rancho Cucamonga California U.S.A., not knowing what to do. They went over my financial situation and decided to do a Wells Fargo loan modification. They helped me with my loan modification letter, and agreed on a great loan modification agreement. 21st Century Legal Services a law office warned me of the many scam rip-off telemarketers pretending to be providing loan modification services. I thank 21st Century Legal Services so much for saving my home. I hope my story encourages anyone in danger of losing their home to call 21st Century Legal Services or check their website out. Their phone number is 1-888-483-1748 and their website is www.21stcenturyremod.com check out their website and watch their commercial.

Good Luck To You All!!
-Sally Rose