While I wish that there was a simple, easy answer, this article puts into words what I have been trying too say. Before you bark at me at least try and understand the complexity of the problem.
And oh by the way, sweet dreams.
Providing relief to current homeowners who are in trouble is a politically expedient move, but at the end of the day, prices are still far too high for the next generation of buyers – particularly now that lenders have reverted back to demanding hefty down payments and using more conservative underwriting standards. Which means that the current imbalance in supply and demand will remain a problem and help push prices down for years to come.
http://www.businessweek.com/the_thread/hotproperty/archives/2008/11/modifying_mortg.html?chan=top+news_top+news+index+-+temp_top+story