McCain's Mortgage Buyout Plan

Remember when John McCain sprung his mortgage buyout plan during his debate with Barak Obama earlier this month? No? We're not surprised.

Not only has it been termed "risky" by Obama and many others, within two days, McCain modified his plan. It is not even mentioned now.

Mike Colpitts of HousingPredictor.com had the best description we have seen of McCain's plan in a recent interview:

This [McCain's Plan] is seen as putting a tourniquet on the crisis, but the hemorrhaging will continue. Only 15-17 percent of all mortgages are subprime. The majority of the problem is with homeowners who have adjustable rate mortgages. These people are unable to refinance because their homes don't have the value they did when the original mortgage was taken out.

Is there any hope for these people? Time will tell, but don't count on it.