Mortgage assistance program are of two types and if availed through the right channel and with the right amount of preparation then the individual can save his home without any hassles and without falling under debt.

The special refinancing program helps people secure a lower rate of interest in the amount owed whereas the loan modification helps them secure lower rate of interest on the amount owed. The first mortgage loan you take while purchasing a home helps you settle down in your own home and makes you feel super good about the investment. However, the positive situation might change all of a sudden and the home owner might face difficulties in paying off the first mortgage loan as the lesser a person’s ability to manage his funds for daily expenses and investment repayments the more he will go into debt and in the process face foreclosure in the near future. However, since experience teaches everyone a bitter lesson, the real estate market and the lenders learnt a lesson when the home which had undergone foreclosure was to be re-sold in the real estate market and it was a really tough time getting the right value for the particular home.

Since it was very difficult for lenders to sell off the home again in the market, the Government decided to stop the increasing number of foreclosure cases by extending a helping hand to all the debtors who were on the verge of losing their homes and turn it into an opportunity for the home owners to save their homes by paying off the mortgage amount at lower rate of interests or over a extended period of time. The Obama administration introduced two main types of mortgage assistance programs: the first one being the home affordable refinance program and the second being the home affordable modification program.

With the help of home affordable refinancing program home owners were given an option to refinance their mortgage and in the process decrease their monthly payments to an extent which are affordable to them and which can be paid off without any hassles to save ones home. This special refinancing program enabled many home owners to reduce the burden of debt on their shoulders especially the stress of losing their homes by either re-negotiating the interest rates and reducing the existing interest rate to a lower rate to make the monthly repayment amount affordable. However, if anyone wants to refinance their mortgage it is important to find out the value of one’s home as more often than not people whose home value has decreased over a period of time often find it tough to find lenders who will assist them in the home affordable refinance program. The prerequisites for qualifying for special refinancing program are the mortgage loan should be guaranteed by Fannie Mae & Freddie Mac, the amount owed to the lenders should not be more than 80% of the home's value, one must not have missed out on loan payments in the past 12 months etc.

The second type of mortgage assistance program which are known as the loan modification is also a secure way to avoid foreclosure. Mortgage loan modification enables an individual to reduce mortgage payments to 31% of their gross total monthly income either by lowering the rate of interest or by extending the term period of repayment to up to 40 years. Under loan modification the amount of principal can also be reduced which is owed to the lenders.