Few people believe that the foreclosures come because the debtors are unable to pay their mortgages on time and not because the real estate property valuation falls down. Unforeseen circumstances are the reasons for the uncontrollable debts and the debtor cannot help in this situation. Though, many people are careless with their finances and spend a lot but few are innocent and under heavy debts. Thus Obama has designed the home affordable modification program for such debtors who really want to save their home from foreclosure and get debt free.

The government is providing economic relief to assure that the repayment doesn’t exceed 31 percent of the client’s monthly income. By lowering the monthly payment, the interest rates also get lowered and thus the debtor experiences a great sense of relief.

To encourage the servicers for the mortgage modification program, each loan modification occurred provides $1000 to the servicing company and additionally extra $1000 for a year around 36 months. The consumers also qualify for $1000 off the principal for a year and this is for 5 years.

To get eligible for the Obama loan modification programs the loan should be originated before January 1, 2009, the homeowner should also be able to prove his financial condition, as why he incur the debts, the home should be the primary residence of the borrower, the amount owe on the first mortgage should not exceed $729,750. If a person fulfills the above all requirement than he would be eligible for the loan modification plan and he can would be easily able to pay his monthly payment and save his home from foreclosure.