Bailout for Homeowners -- Is It Working Where You Live?

Living in one of the states hardest hit by the recession, I've seen first hand how many people are facing the ugly reality of losing their homes. It's awful to see friends lose their homes because of a job loss or cutbacks at work. Still, I have to wonder if all of these mediation and bailout programs are working. Nevada has received nearly $200 million from the feds for various programs but from what I can tell it hasn't made much difference. The dead lawns persist and many homeowners are still underwater in their mortgages. Our house is worth at least $50,000 less than we paid for it six years ago and we bought at the beginning of the boom not at the peak. I would love to walk away from it but that's not just the right thing to do. So we continue to make the payments and hope that one day the value returns. Our house has essentially become a forced retirement savings account since we probably won't be able to sell it until we're 60.

I was in favor of the bailout for the banks as I thought that letting them fail would have devastating consequences for all of us. And I'm for bailing out homeowners to keep them from losing their homes. However, I am not for bailing out those who gambled on the market as investors or who kept using their home equity as a credit card. If you gamble, sometimes you lose. And then you pay. Anyone who's ever been to a casino or the track knows what I mean.

The sad reality is that whether or not these bailout programs are working there is little choice but to keep going. Just like the banks, the alternative is too frightening. What we're doing may not be working but don't you think that failing to do anything would be even worse?