Qs about John McCain's Mortgage Rescue Plan

Can we discuss this? I want to make sure I understand what this would actually mean.

My impression was that the government would buy back the bad debt and allow people to refinance at the new (lower) value of their homes?

So... this would only apply to the people who are about to default? What about the people who bought homes they could afford and arent going to default? If this is true, wouldn't it encourage those people to stop paying for their mortgages as well?

Also, if the government is buying back the bad debt, doesnt that mean it's just like another bailout where the burden would fall on the taxpayers?

I don't remember if this was McCain's old plan or Obama's plan or nobody's plan, but I thought originally the securities companies were going to take any losses incurred by 'refinancing' the loans... not the taxpayers?

I'm torn about how I feel about the whole thing anyway -- I'd hate to reward the people who bought homes they couldn't afford and penalize those who actually were responsible and bought things within their means. I'd also hate to shield the companies that took advantage of buyers.

Can someone clarify what the candidates plans are, what the McCain plan specifically would mean, and what you think is the solution?

I'm trying to get more informed here



Edit: It seems like this would be rewarding those who are living beyond their means, penalizing those who spent responsibly and then encouraging those who spent responsibly to default on their loans? And devaluing the housing market? and doing all of this at the expense of the taxpayers?

There has to be something I'm missing.... or he wouldn't be touting this like it would save our country. Please some McCain supporters explain this to me?

That is McCain's propostion during the election but as you know half the things they say will never come true. This has to be passed by congress.

So they passed a bill to buy bad debt but haven't figured out how they are going to structure it yet. As Espo22 said it would not be wise for people to default on their mortgages and affect their credit scores.

Like always..the good middle class never get breaks...

the thing i can't get straight is whether this is part of the bailout plan--buying the 'toxic' investments and using the govts ownership to renegotiate with families--or added legislation to address the fact that the passing of the bailout has done little to boost investor confidence.