The country's housing industry has suffered a lot from the economic recession. The number of foreclosed properties continued to increase, lowering the values of properties and further dragging the economy of the local governments and the country as a whole.

As the new government sees the burden carried and given as well by the housing industry, it has been giving much of its focus to preventing more foreclosures to happen. However, this has given rise to different reactions from lenders and housing counselors. While some praise Obama for the plan, still others are criticizing it.

For instance, according to Scott Talbott, senior vice president of government affairs at the Financial Services Roundtable, the new government's plan is a solid step that the country has taken to lift it out of the mire it is currently in. Spokeswoman for the Center for Responsible Lending Kathleen Day agrees, saying that this rescue plan is a step towards the right direction, that is, towards fewer foreclosures and more homeowners being able to keep their properties.

On the other hand, there have also been a lot of criticisms against this plan. For example, Congressional Republicans are saying that the program is only encouraging people to be lax about their mortgage responsibilities. It is difficult to determine whether or not a homeowner is declaring their true situation, so preventing having a foreclosed property may very well just be running away from responsibility.

Still some are saying that the program should have been mandatory to all lending institutions, so that it will be strong and will be able to fulfill its aim. Experts say that the best strategy to avoid foreclosures is to lower balances, and the government's foreclosure program is not aggressive enough to be effective in dealing with the rising number of foreclosures.

Basically, the rescue plan provides funds to banks and other lending institutions so that they can adjust their mortgage programs and give homeowners more time and chances to avoid foreclosures. On the part of the borrower, the government is also encouraging banks to be more considerate in dealing with them. Under this rescue plan, not only those who are in trouble are qualified to benefit. Even those who are still presently able to pay their mortgages can have opportunities to keep their houses and avoid foreclosures. The Obama administration is expecting financial institutions as well as the whole country to support the President in this advocacy.