During the second presidential debate John McCain said the first thing he would do to fix the housing situation is demand the treasury secretary to buy up all the bad home loans and sell them back to the homeowners at the reduced value of their home. This would lower their monthly payment. I kinda agree with that, but what happens when the housing market rebounds and home prices go up in value? Do we then refinance those loans and the people pay higher monthly payments or do they keep the lower valued home price? It seems that if we were to allow those people to refinance to a lower home value there should be some sort of penalty for refinancing to a higher value later when they get ready to sell and make a profit.