The intention is good. And some of the actual cash outlay may even be good.

But a much better, simpler and certainly less expensive approach would be using influence to affect HOW transactions actually work; with most of that with the prior lenders at the seller end.

Look at all the "horror stories" of buyers attempting to close a deal and every snafu is squarely within the policy and practice of the REO agency.

All BAD BAD BAD BAD BAD BAD ideas

The free market should rule. Those who took on mortgages that they could not handle and/or did not have backup emergency funds readily available should be foreclosed.

Fiscal responsibility needs to be restored.

They can rent.

Obama is not a real estate expert. Neither is the Fed Reserve or Senator Dodd and Frank, who both took HUGE donations from Fannie and Freddie Mac. Oh yeah, Obama got more than both of those two combined!!!!! Now we have the ex Executive from Freddie Mac being in charge of the bailout out and banks. What a joke it is. Obama is definitely bring out his socialistic ideas and making them more of a reality.

Let's see, the since Obama took over, the U.S now owns Fannie Mae, Freddie Mac, all the TARP Banks, AIG, GM, etc. What am I missing? You think the Government can effectively and efficiently bailout the real estate market?

Dream on.

Hi, Frank -- AIG, Fannie and Freddie were taken over in September of last year. TARP itself started in October, though it's certainly been ongoing.

Here's a handy timeline (one of many out there, I'm sure): http://bailout.propublica.org/main/timeline/index

I own a condo and have an outstanding balance of $140k, consisting of $104k primary and $36k secondary. I took the home equity to consolidate debts. At the time the property was valued at $163k but now it is valued at $134k. I'm looking to sell because i am engaged and will be moving into my fiancee's home. Check http://obamamortgage2009.blogspot.com/2009/03/obamas-mortgage-modification-do-you.html If I have a buyer who offers me within say $5-7k of the outstanding, can i agree to assume a loan on the residual and pay the bank the difference over time with interest? The same bank holds both mortgages.

That's a good question, sheriearly, and I don't know. You might ask your bank, and if you're not getting anywhere with that, try a housing counselor or mortgage broker.

I think it was a bad idea to meddle in the housing market. Tax credits, increased loan limits, and bank bailouts have obscured consequences from the housing bubble. All that effort would have been better spent modernizing regulations on the real estate and banking industries to prevent this sort of bubble/bust cycle from occurring in the first place.

Navigating the current market is a complete pain particularly when dealing with the banks and agents. I would have rather had a timely transaction rather than a tax credit. Instead I'm left waiting months and months for a bank to make up its mind despite all the bailouts and business it's gotten recently. I doubt they were this slow 2 years ago.