Geez, there's no handouts. The administration is simply trying to coordinate the lenders to reduce the crazy number of foreclosures. The idea is the teaser rate, or a similar rate will be extended for a few extra years. Hopefully the market can recover pricing and then they can sell or refi at that time.
It will be cheaper for the banks in the long run, which should keep us from having to pay higher fees to make up their losses. Its a good thing for the economy. It will keep YOUR home's value from dropping further.
I agree it isn't quite fair for these borrowers to catch a break due to their own poor choices, but the hard lesson will be painful for all of us if there isn't something done.
Values drop, property taxes drop, and suddenly your local government has to cut back cuz they're overbudget... keeping home values from dropping will benefit everyone.