This is something that needs to be done "already." This is not going to happen fast enough to prevent those about to lose their homes. My friends are looking at rentals this afternoon because they've tried, been approved, then turned down, to refinance their mortage. They truly try hard but with shrinking wages, they cannot keep up.

At the same time. It needs to be careful not to become a bailout, a hand out. It needs to be a restructuring of their loans, ie, giving them comparable rates to those with good credit scores, allowing them to refinance into a lower/longer mortage, etc. Those who sincerely want to keep their homes and be accountable for it, but struggle due to the economy, will still be able to.

Or if all else fails, why can't the banks rent their homes back to them? What are the banks going to do with scores of empty homes?? My neighborhood is half vacant already. I dont like it!

This is a dumb plan destined for failure. If you haven't noticed the fed has introduced a new program weekly for the last 3 months. Why push on a string? Trust me, your kids will thank you when they can actually afford one of these ridiculous priced homes. I hope that someone more creditworthy gets your friends home who is not deserving and will live up to their end of the bargain. I wish people would wake up and realize that the "foreclosure victims" are victimizing the rest of the nation. I do feel bad for those who have lost their jobs and wish them the best. If they took out a mortgage that they could pay for and were trying making payments until a job loss, health or other reason that is different than the masses that are walking away.

The sooner they get out of the mix, the sooner this will correct itself and we can move on. Moratoriums on foreclosures are pointless.