It is good to see the states doing what they can to curb this awful problem of foreclosuers.  However, I do not think it is really fair to the tax payers for our government to use tax dollars to buy "bad" loans that never should have been made in the first place.  I would much rather see bankruptcy relief provided in the bankruptcy code by allowing the bankruptcy trustee to modify the terms of a residential mortgage.  Granted, that would put the onus on the investors, who may not have been aware of the "junk" they were buying, but that is the risk you take when you make an investment.  The real crooks are the lenders, but they have already sold their garbage to the market and many have gone under. 

Best,
Robert A. Franco