Who should get the bennies?

According to this article on cnn.com, iReporter and mortgage broker Margaret Lopez thinks we should use the $700 billion to bail out citizens who were sold these bad mortgages.

Sounds like a great idea to me. If banks need the bailout because the mortgages they invested in turned out to be bad, then we should be ensuring the mortgages get paid, right? $700 billion should cover it.

Right? I mean who should get tax dollars? Banks who made bad investments, or tax payers who made bad investments?

Obviously people should not have their mortgages bought outright. There should be a review process where their payments are reduced, possibly to pre-balloon rates, and their years extended to some large number that means they'll have difficulty building equity in the home because they'll be paying 99.9% interest for a long time, and their credit rating should reflect their poor judgement, but after all that, they should be able to keep their house and make the payments, just like the banks need, and everyone's less scared and a little wiser.