Because of the pinch of the mortgage crisis, almost 4 million homeowners in America are wishing that there could be an accurate roadmap to stop foreclosure. To answer this need, the Obama administration has unveiled it ultimate master plan to cap the skyrocketing foreclosure rates in the US. For months now, the government has been implementing the Obama loan modification program to help distressed homeowners legally preserve ownership of their mortgages.

From how the economic glitch fix is going, it seems that the Obama administration firmly believes that solving the economic crisis lies in settling the mortgage situation in the country. The heart of the program is restructuring troubled mortgages through loan modification. This process involves helping homeowners make their monthly payments by encouraging banks to reduce monthly mortgage fees, interest rates, and extending loan terms. The ultimate goal of the program is to stop foreclosure and increase home retention rate in the US.

During the initial run of the program, many mortgage experts and banks showed their disapproval because it did not yield good results in the first few months of its implementation. It turned out that more than 50% of modified loans went bad again after only 6 months. This is due to both the borrowers’ delinquency to pay the mortgage and the government’s lack of a clear-cut process on how to go about with the plan.

The government was quick to act on the problem by unveiling a detailed plan on how to make the program work. It specifically specified the procedure that banks and lending institutions are expected to do and the borrowers’ role in the whole process. There were also some monetary incentives given to both the borrower and lender to reinforce their support for the program. Looking at the points stated in the Obama loan modification plan, I could say that it is really an ideal process to solve the mortgage glitch. But at the same time, I am afraid that all these planning would go down the drain because of poor implementation on the government’s part.

If the Obama administration really wants this mortgage glitch fix to do its purpose, it should be able to rally the full support and cooperation of lenders and banks for without it, the plan would not materialize. Likewise, borrowers should be educated and well informed about the benefits that they will get from the program for without proper education, borrowers would not be aware that such a solution exists, therefore losing the chance to stop foreclosure.