The plan aims to reduce the number of foreclosures by spending taxpayer dollars and essentially giving money to selected people and banks at risk of foreclosures. The cost of this $75 billion plan is equivalent to $500 per US taxpayer (i.e. $75 billion divided by 150 million taxpayers).
Nobody likes people being forced out of their homes. However, it is also not good to reward people and banks that are overextended especially if it involves taking money away from people, taxpayers, who exercised more prudence.
Imagine a community of twenty or so hard working taxpayers where only one of the people is at risk of foreclosure. Imagine if the government forced each of the hard working taxpayers to walk over to their neighbor's house and each give $500 to the one person who is at risk of foreclosure. This is not the recipe for building a prosperous country. This is a recipe for more resentment, entitlement, and failure.
The root problem with a foreclosure is that somebody can't afford to live in the home they owe money on. Giving taxpayer dollars to people so they barely make payments is only going to drag the core problem on into the future.
