It should be observed that the key to the President’s plan is the reallocation of a portion of the funds that are supposed to be used to help out troubled financial service companies to the fight against foreclosures.  The three key objectives of the Obama Foreclosure Bailout  program are the provision of more loan modifications, new home loans, and loan refinancing.  The first portion of the plan is designed to help homeowners who are underwater to obtain refinancing for their home loans to make their monthly payments more affordable.  To be eligible under the Obama Foreclosure Bailout plan, the remaining unpaid loan value should not be greater than 105 percent of the current price of the home.  The second portion of the government’s plan has to do with using loan modifications to place a maximum limit on the monthly payments, specifically 31 percent of the borrower’s monthly salary.  Lastly, the Obama Foreclosure Bailout plan has also sent 0 billion to Freddie Mac and Fannie Mae so that they would be able to offer more new home loans.

A criticism that has been made by some people against the obama foreclosure Bailout plan is that it is not justified by sound economic principles.  Nevertheless, members of the Obama Administration continue to support the program and are relentless in their efforts to inform the public about its progress.  To demonstrate, the Housing and Urban Development and the Treasury Departments have declared that the program has attained a milestone even before its projected date of accomplishment.  Specifically, they pointed out that there are now more than 500,000 approved home loan modifications almost one month before schedule.  Critics are therefore too hasty in their judgment of the plan to help homeowners who are threatened by the possibility of foreclosure.