Barack Obama has seriously proved that change is good, and he is proving so by his actions. Among the dozens of good changes that he has already implemented since assuming office early this year, the most significant is the loan modification program that he has planned and worked on. The Obama federal loan modification is special because for the first time in history, there’s a loan relief program that is really to the advantage of the homeowners and not just another gimmick to make the lenders happy.

This program is in direct benefit for people who are facing hardship due to some reason and are not able to keep up with their mortgage payments. For these people, the program offers a huge sum – $75 billion – in funding. This sum will be assigned to help people who wish to get approved from their various lenders. This cash input in the accounts of the financial providers simply means that they will be lenient in selecting people for their programs. As a direct result of this, many more people will be able to get approved for a loan modification in the near future. Experts suggest that the Obama’s program is going to directly benefit 5 million people in the US to come out of their mortgage related problems.

So, who can benefit from the Obama federal loan modification program? Well, the following are some points that will help you know if you are eligible.

1. Everyone who holds a mortgage that is in excess of 105% of the present value of the property they own can apply for the programs.

2. Obama’s program is applicable to all loans that fit under the premise of Freddie Mac and Fannie Mae loans, which are the major loan owners and insurers in the US.

3. Special representatives are appointed by the HUD (US Housing and Development Department) to help people with their loan modification programs. These people act as counselors and they will help borrowers facing hardships in negotiating with their lenders. Such free professional help will put an end to do it yourself programs, which often shows no results.

4. Something that might make mortgage modification redundant in the near future is that all first time homebuyers are being considered for special grants. These grants are available for people who have hardships and also for other people who have some valid justification for the grant. In some cases, grants will also be provided to people who are looking at renovating their houses.