Is the White House’s decision to buy at risk loans, especially homes, and refinance them to prevent occurrence of a great wave of foreclosures that might sent millions of Americans homeless a wise move?

Some sectors believe it is good that the federal government has taken a bolder step forward to save homes instead of just pressing lending industry to grant homeowners more affordable payment terms.

But how would this be implemented? With the $50 billion already approved for the foreclosure bailout, the government will buy mortgaged houses at a discounted price.  Homeowners would no longer have to leave their houses they have known to be their homes, because the government will come up with a refinancing scheme for them to pay a much lower mortgage rate.

This would not be a losing proposition for the government as it plans to re-sell the loans to investors to free-up more funds to buy more loans and save more homes.  If not all would be saved, at least half of the 12 million families facing foreclosure would be able to keep their homes.