Loan companies should be doing this on their own, not waiting for the government to force them. The failure of all those loans would cost them more then they would ever make by foreclosing. Better to extend the current terms and continue to make $ then to close up.

And there seems to be an overwhelming negative opinion of sub prime borrowers on here. I'm one. I'm not in default, not going to be anytime soon. I'm not an idiot, I'm not stupid. Couldnt put 20% down, nor am I a 'slacker'. I took advantage of an opportunity while my credit wasn't the best and so I'm in a poor loan until I can refi and not get hit with a hi prepay penalty.

As long as the government doesnt spend $ to save these folks I'm all for the effort to help.