Mortgage Relief?

Let us take a look at an article about the Making Homes Affordable program.......

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"I am writing again to express my frustration that foreclosure filings continue to outpace loan modifications,'' Merkley wrote. "I believe that the Making Home Affordable program has more potential to help troubled homeowners.''

And today, Merkley pressed a Treasury official during a Senate hearing.

"To date ... we have spent, out the door, $288 billion to the banks, $76 billion to the auto industry, and ... $270,000 according to (the independent General Accountability Office) for our homeowners,'' Merkley told Assistant Treasury Secretary Herbert M. Allison.

Allison said the agency is improving and that the start-up problems have been addressed.

http://www.oregonlive.com/politics/index.ssf/2009/09/merkley_demands_answers_on_mor.html

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My comment:

Apparently, the banks and wallstreet have been bailed out while mainstreet has been left behind. My question is: Suppose the homeowner 'affordable' plan had been utilized to a greater degree? Might this only paper over a problem? Delay it? My guess is, for the most part, yes.

In other words, if you can't afford the house wouldn't it be better to cut your losses and adjust your expenses below your income now? Plans like this, with a price tag in the billions, while probably well intentioned don't work out for the benefit of many.