Bailouts of the Foreclosures, will that fix the problem?

Is a bailout the answer??? For the short term then probably yes... for the long term, I am not sure this is anyway to correct the problem. It is too easy to throw money at a problem and hope it will go away. What we really need to look at is why so many people are in foreclosure. I think the real reason goes back to the Mortgage Broker who put them in the position to fail, the Home Owner who does not really know what they can afford and society today that tells everyone to get as big a house as you can get approved for.

The long term answer is education and fines. We need to educate future homeowners on budgeting to get them in a Mortgage that will succeed. We need to make the Brokers responsible for their actions and fine them for the bad loans they produce.

Here is an article that deals with the bailout aspect of the foreclosure help. I hope to see more sanctions and fine on the way for the Brokers.

"$1 Billion Pledged to Help Fend Off Foreclosures
Advocacy Group to Refinance Mortgages of Those Stung by Subprime Loans

This article is written by By Dina ElBoghdady and Nell Henderson, posted on Washington Post.com.

Neighborhood Assistance Corporation of America, an 18-year-old housing advocacy group, yesterday announced it would commit $1 billion to refinancing the loans of lower-income people at risk of losing their homes.

The financing will come from CitiGroup and Bank of America, which have been lending money for years to borrowers screened by the nonprofit group. NACA, of Boston, said it had helped put 50,000 people in homes since its creation.
   
"If we put people in the front door and they're being forced out the back door, then we're not stabilizing neighborhoods, which is part of our mission," said Bruce Marks, the group's chief executive.

The announcement comes as lawmakers, lenders and others with a stake in the housing sector scramble to stave off a wave of foreclosures. Foreclosures and delinquencies are rising largely because of problems in the subprime segment of the mortgage market, which caters to people with blemished credit records, little money for a down payment or other factors that put them at greater risk of default...."www.washingtonpost.com