The government's loan modification program is certainly very popular because of the recession. The recession is almost over, but the government's initiatives are certainly very encouraging. During a recession, the government provides a lot of money. They provide funds for desperate homeowners so they can repay loans and avoid foreclosure.

The level of restraint certainly increased. Therefore, the “government house loans” (which is also known as prstamos hipotecarios del gobierno in the Spanish language) develop new programs and funds that are available free of charge. You should know that the financing program is provided by the bank. But because of the recession, most of the banks went bankrupt. 

Therefore, the government has taken responsibility for the situation which is getting worse from time to time. Billions of dollars have been made available to consumers. The government has just started distributing money among desperate homeowners. 

They believe that for any economy, it is very important for citizens to spend money. It helps in the circulation of money. But because of the threat of a ban, it didn't really happen. The government understood this fact and therefore decided to raise funds and distribute them on behalf of various loan modification schemes.

The government allows homeowners to pay only 40% of their income. They ask the lender to change the loan installments accordingly. This of course makes homeowners quite stress-free. You will definitely understand how this loan modification scheme works. Only then can you use these programs.