[bellerophon]

...going to affect homeowners at risk of foreclosure? How is the bailout going to help the middle class sector of the financial crisis? I don't know much about this , isnt it for big bank companies?

[mz_omowale]

In an ideal world, the bailout would pay the mortgages and the the people in foreclosure would be able to keep their homes, since it was the fault of the poor economy why they were losing them in the first place. However, the bailout will only pad the already loaded financial institutions so that they can continue to pay their top officials millions, sometimes billions of dollars per year. I do not remember where I researched the salaries of bank leadership. It was a couple of weeks ago. But their salaries are astronomical.

[dschnatz]

Part of the bailout packages being proposed address the bailed out Fannie and Freddi renegotiating the mortgages. The interest rate would be a reasonable fixed rate and re-amortized for 30 years. If the homeowner still could not meet the note, foreclosure would still happen. Many loans were made which the borrower had no ability to pay. This bill will not just give the borrower the house for free, but will make it fair and stretch the remaining term on their loan to make the payments lower.

[BigBadWolf]

It shouldn't have any effect on mortgage holders at all...this plan has nothing to do with defaulted homes.they said bad debt bailout meaning mark to market...FASB 157...debt...that had nothing to do with housing....Here's how that worksExample: If an investor owns 100 shares of a stock purchased for $40 per share, and that stock now trades at $60, the "mark-to-market" value of the shares is equal to (100 shares × $60), or $6,000, whereas the book value might (depending on the accounting principles used) only equal $4,000.Similarly, if the stock falls to $30, the mark-to-market value is $3,000 and the investor has lost $1,000 of the original investment. If the stock was purchased on margin (Borrowed money with the promise to pay), this might trigger a margin call (Demand to pay back) and the investor would have to come up with an amount sufficient to meet the margin requirements for his account.... its this bad debt they want to buy...the bad debt from investors who couldn't meet margin...not defaulted mortgages... people there is no real asset to be had just funny money AKA collateralized debt obligations, or CDOs at the end no one will hold anyone's mortgage they will hold that promissory note to repay said margin.