President Obama's Home Affordable Plan was introduced in February 2009.
Its purpose was to help homeowners avoid foreclosure and give the sagging real estate market a boost.
After a year of operation, the program has been improved.
It is understood by those running this government program that as the needs of the country's homeowners evolve, the program needs to evolve, also.
There were some changes made in the spring of 2010 to help the program reach more people and make a greater impact on communities across the country.
Preventing foreclosure helps stabilize families and communities.
The program was concerned with the needs of those who were currently unemployed and seeking a job.
There was a temporary mortgage modification set up to help them avoid losing their home while they are trying to find employment.
These temporary modifications have the capacity to become permanent loan modifications after employment is found or after six months.
Most homeowners have seen their homes lose value as the real estate market plummeted.
This has often created an underwater mortgage, where the homeowner owes more than the home is worth.
President Obama adjusted the amount of LTVpercentage allowed in a refinance and a loan modification to 125%.
You an owe up to 125% of your home's value and take advantage of these programs if you qualify.
There were also some new funding added that worked on a local basis, enacting programs that suited the needs of the community in particularly hard-hit locations.
There were programs set up to help those who cannot work out a loan modification under President Obama's Home Affordable Plan.
There are incentives set up for lenders to help homeowners discharge loan balances after a short sale or a deed-in-lieu of foreclosure.