This is a fiscally irresponsible political stunt, and it should be vetoed by the President. When we bought our first house and this one, we kept our financing within what we could reasonably afford.
During the heyday of the no-money-down loans, the interest-only loans, the no-income-verification loans and the rest of the mortgage scams of a few years ago, plenty of us recognized that they were greed-inspired foolishness. So now that mortgage companies are going under and people in much bigger houses than they could truly afford are losing those houses, the rest of us should bail them out with our taxes? No, I don't think so!
I live within my means. If you bit off more than you could chew, that's not for me to fix. We are big supporters of charity and assistance to those in need, but I'm not for rewarding people who were stupid, short-sighted and greedy.
If you make $40,000 a year, then no, you never should have bought a $750,000 house. Can't afford the payments now? Too bad! That's not my problem. The foreclosure goes forward, and, since you have no equity in the thing, you move on. That's life. Don't expect the rest of us to fix your mess!