The IndyMac bailout was hailed by some, as the template the government would use to bailout other banks stuck with mortgage woes. But after a two-month state moratorium on foreclosures, IndyMac's foreclosures in November rose 242 percent from October.

A new analysis by a former mortgage broker, written up in the New York Post, reiterates the view that as long as a modification program tinkers only with interest payments and not principal, it will not work. He thinks "homeowners" in the modification program are now essentially paying monthly rent to stay in their homes with little upside. Loan owners aren't faring much better, especially as foreclosures start to tick back up. For many securities owners, it might have been better if the home was sold in foreclosure to recoup at least part of their investment.

For more:
- here's the New York Post article 

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