The mortgage bailout programs being touted by both the public & private sectors are all fine in theory but miss the point in one huge way.
So many of the homes currently under threat of foreclosure were bought by speculators looking to either flip the home or sell out and profit in a year or two. They, and even people who bought a place to call home, can not be expected to have much interest in deals that give them 40 years of low interest to pay for a home that's worth a fraction of it's original value. In areas like California, Florida and Las Vegas most would have to wait decades to see their value return. Even with affordable payments I believe most will do the math and walk away at their earliest opportunity.