I know. Lots of articles with lots of experts saying lots of crap, but none of them have a clue. The government has not stepped in and done anything. The current plan is a voluntary plan worked up between Paulson and the banks/financial institutions. Now if Congress steps in and tries to pass laws, that will be a different story. But so far, this is not a bailout and this is not the government forcing a solution on anyone. This is the banks volunteering to modify certain loans which are in their best interest to do so.
Right on the money! I'm in the banking world - nothing has happened to prompt that world to do anything, yet - except to continute to do what it does - attempt to avoid foreclosures - work with customers when loans become past due - trust me, banks do not want foreclosures - especially in this housing market - they can easily lose $100,000 on a $500,000 house - pricing adjustments and selling costs - if they can sell it at all.
As for funds to counsel homeowners - counselling is free from lenders - if a loan can be re-structured, lenders will find a way - no government money is needed in this area as well.
BTW - Seniors are already paying for this mess - lower rates on CD's and other fixed term investments. So, money has already changed hands.