All of us have gone through a tough time financially in the past couple of years due to the recession which hit the American economy and as a result thousands of people lost their jobs and had to do make a living with very little money. The global financial crisis had a negative impact on all the major industries in America and things came to a standstill. The housing industry in America too was affected and the common man had to worry about his shelter as well in these difficult times.

These days, the US residential housing is facing a lot of problems and a major percentage of it is in a complete mess and there has to be a solution for it. The homeowner in America today owes a lot more than the actual market value of their home and is badly in a debt. Even if the person who owns a home wishes to sell it today the sale proceeds will still not be enough to repay the loan hence he will still need to pay back the remaining amount by himself, which may be a huge burden. And this will leave him without a shelter as well and so most people see it as a negative thing in America, who has taken a home loan.

The home owner today is left with very little option but to continue paying the loan payments due to the fear of losing shelter. And if that is the case, then the person certainly is not contemplating of selling the house, and so he may not be interested in knowing the current market value of his house as it is of little importance to him in these circumstances. For helping such people, the present Obama administration has come up with a solution that may lessen their burden just a little bit. The administration through the loan modification strategy wants to help homeowners by adequately modifying the terms of the loan to lower payment so that it is comfortable for the homeowner to repay the loan amount.

Some people see it only as a temporary solution rather than a long lasting one because the modifications that are brought about in the strategy only last up to five years and not beyond that and after this period the lender is free to impose the earlier home loan terms to the home owner. So in a way, this is only pushing the problem out of sight for the present instead of actually coming up with a solution. The financial crisis may well be repeated again in the future. Hence the mortgage modification is hardly the best solution in the America.

The Obama administration is unable to solve the basic issues in mortgage loan and this is quite evident from the negative impact of the loan modification strategy and most people see it as a failure. The strategy does not address the problem of mortgage loan effectively in the country today and is far from giving a practical solution which is badly needed in a time like this. Most homeowners have no clue as to what will be their fate in the coming years.