I am not in favor of it. I've already noticed the sleazy mortgage brokers are back to running ads trying to get people to take advanatage of the govt backed loans.
"But one thing that a lot of people forget to consider is that these borrowers are neighbors of homeowners who have been paying their mortgages faithfully for many years or who own their homes outright, etc and these good folks are going to be hurt (through no real fault of their own) from the consequences of having foreclosed homes in their neighborhoods that could just likely sit there empty for months and months."
With the exception of our housing values going down, I don't understand how other people will be hurt in this scenario. If you kept clean and had a mortgage you can afford and pay on it, no bad things will happen. I am one of those folks that may be upside down right now (bought in 04), but since I can afford my house payment, the only thing I am screwed by is the fact that I can't move without taking a loss. I shouldn't get govt money for that.