The US president Barack Obama has taken keen interest to resolve the housing issues of all Americans. The current economic crisis and unemployment has created foreclosure for many people. The worst happening is the declining property values which cause the people extreme tight for money. Many people are not in a position to repay the home loan as the financial position continues to shrink due to crisis all over. The president thus proposed a stimulus package wherein individuals have the option to modify the loan so as to lower the monthly payments. The savings on loan interest amount is used to tide over the income deficit.

The present package is available for those who have mortgage loans from Freddie Mac and Fannie Mae.The home owners can apply through their lenders who process the loan modification structure based on the documents produced. The borrowers should satisfy the crisis through correct statements and explanations in the documents.

Some of the benefits of this present package are:

1. The previous stipulation to have a minimum equity condition of 20% has been now replaced allowing more individuals with a lower equity to take part into the plan.

2. Interest rate has decreased from 6.5% to 5.16% which is a great relief to save money on interest.

3. Individuals who have availed loans with adjustable mortgage rate are allowed to convert it into a fixed interest rate package.

4. A loan extension from the present short period to a longer period of 20-30 years is allowed to decrease the monthly repayment money.

The stimulus package is one of the many incentives declared by the president Barack Obama to bring America to its past economic glory and prosperity.