Upside-down mortgages

Seventy percent of our poll respondents would like to see increased government regulation of mortgage lenders. Only 4 percent said they've missed a mortgage payment, but families stuck with subprime loans are at risk of falling behind.

When Argyro and Yiannis Tripodis bought their modest home in Hobart, Ind., they paid $7,500 in closing costs. Their loan came with an $11,000 prepayment penalty, making it costly to refinance. The mortgage's adjustable interest rate started at 12.065 percent and recently dropped to 9.99 percent.

Like 12 million other American homeowners, the Tripodises owe more than the house's market value, but they are struggling to stay current on their mortgage. They've tried to refinance but have been denied. Mortgage servicers often won't help struggling borrowers until they're already delinquent. "We just want to pay our mortgage and pay a decent amount and last long enough until we can refinance or sell and move on," Argyro says.

Several plans are being promoted to help homeowners like the Tripodises. As of this writing, the government is leaning toward a plan put forth by Federal Deposit Insurance Corp. chairwoman Sheila Bair to use part of the $700 billion to guarantee mortgage loans and convert unaffordable ones into fixed-rate loans that the homeowner would be able to pay over time.