Senator John McCain recently announced a drastic changes in his mortgage rescue plan. Originally, his plan directed that lenders write down the value of troubled mortgages, accepting any loss that came with that. Basically, the brunt of assisting the market, would fall to the lenders.

However, he now has changed his plan (called the American Homeowner Resurgence Plan), giving it a value of $300 billion, that may make tax payers unhappy. McCain announced that, "I would order the Secretary of Treasury to immediately buy up the bad home loan mortgages in America and renegotiate at the new value of those homes, at the diminished values of those homes, and let people make those - be able to make those payments and stay in their homes." In doing so, the government would be turning failing mortgages into low interest, FHA insured loans.

Doug Holtz-Eakin, McCain´s economic advisor, said that many, likely millions, or troubled borrowers would be eligible. In order to qualify, homeowners would have to be delinquent or about to become delinquent in making their payments. They would also have to be living in the home that they have the mortgage for, meaning investors cannot qualify. They also have to have shown that they were credit able when they purchased the property, meaning they made a reasonable down payment, and provided proof of their income and assets.

Holtz-Eakin did say that the plan could be enacted quickly as the the prerequisites have already been laid out and authority already given through the $700 billion bailout bill (Hope for the Homeowners program) that was passed last week.

There is some resistance to this idea as many feel it is a bailout for faulty borrowers and lenders who gave loans without regard. Obama´s campaign press responded to the new plan announcement, saying that "Last night . . . [Senator McCain] threw out a proposal that appeared to give the Treasury authority it already has to re-structure troubled mortgages. But now that he's finally released the details of his plan, it turns out it's even more costly and out-of-touch than we ever imagined,...John McCain wants the government to massively overpay for mortgages in a plan that would guarantee taxpayers lose money, and put them at risk of losing even more if home values don't recover." Jason Furman, Obama´s economic policy director, said that "Since this beginning of this crisis, Barack Obama has demanded that any rescue plan must protect taxpayers and ensure that they share in any profit once the economy recovers, and he worked to include that principle in the plan that passed Congress,".