Well, get your check book out gang...we have an RTC in our future.

[Neshanic]

"To prevent that, Bank of America suggested creating a Federal Homeowner Preservation Corporation that would buy up billions of dollars in troubled mortgages at a deep discount, forgive debt above the current market value of the homes and use federal loan guarantees to refinance the borrowers at lower rates."

See the full horror here...

http://www.blownmortgage.com/

[Warren Stupidity]

1. Can anyone with an upside down house qualify?

How about folks who aren't upside down but simply have lost real value in their homes, are they going to be left out of this boondoggle because they sought out reasonable loans and paid them off on a regular basis? Oh no, we just get to rescue the freaking banks from their bad debt (all disguised as a bail out for the poor unfortunate homeowner of course.)

I agree with the blog: folks who in are over their heads should just send the bank the keys and walk away. Let the market collapse to reasonable sustainable levels. Funny how bidness gets all socialistic when they are facing the back of that invisible hand.