The plan will acquire all the REOs, these are homes that are already foreclosed so the question of borrower is not even relevent in this bailout. They will just dump these on the market what whatever they can get, and that is not going to be a lot, of course the loss will be borne by the taxpayer but the housing prices will go to the dumps.
Housing prices will continue and accelerated decline with this plan, the only difference is that the losses are now borne by the taxpayer.
This may be a good thing because the banks have been totally unwilling to unload these assets at a realistic price point. This plan will accelerate the unwinding.
