Republican presidential candidate John McCain said in Tuesday's debate that he would allow homeowners (though possibly only retired homeowners - his wording wasn't clear) to renegotiate their mortgages based on the reduced value of their homes:

"You know that home values of retirees continues to decline and people are no longer able to afford their mortgage payments. As President of the United States, I would order the Secretary of the Treasury to immediately buy up the bad home loan mortgages in America and renegotiate at the new value of those homes -- at the diminished value of those homes and let people be able to make those -- be able to make those payments and stay in their homes," McCain said.

Sounds expensive - though perhaps not as expensive as buying the dodgy loans off the lenders.