Homeowners who are having difficulty meeting their mortgage payments are looking towards mortgage loan modification programs for help. But many are on confused about which loan modification program is right for them and what they can qualify for. With various programs and announcements from different lenders, government sponsored programs, and independent programs, homeowners may feel overwhelmed and thoroughly confused. Below are some clear cut answers on the basic loan modifications that are available:

1. The Fannie Mae SMP (streamlined modification program) is only available to homeowners who currently have a loan owned or serviced by Fannie Mae. Most conforming loans fall into this category. With this stop foreclosure program, the monthly payments of qualified borrowers are lowered until it meets 38% of their gross monthly income. This is achieved by lowering the interest rate, possibly to 3%, extending the term of the loan and forbearance of the principal loan amount. This loan modification program carries specific qualifications which you can learn more about.

2. The FHA Partial Claim stop foreclosure program is only available to homeowners who have a loan which is insured by the FHA. If there are back payments due on the loan, a "silent" deferred loan is implemented to pay for these arrears and make the loan current. Until the time the home is either sold or the loan refinanced, the homeowner does not have to make any payments or interest under this loan modification.

3. Individual lenders also offer stop foreclosure programs. The goal of these loan modifications is to lower monthly mortgage payments to affordable amounts for qualified borrowers. They can accomplish this by either reducing the interest rate, increasing the length of the loan, forbearance on a portion of the loan, or a combination of any of these three. Individual lenders have their own guidelines for qualifying for their loan modification programs. It is best to learn more about these to increase your odds of obtaining a loan modification.

With the current state of the economy, millions of US homeowners are having trouble making their mortgage payments and are facing foreclosure. Help is available to avoid foreclosure through mortgage stop foreclosure programs, but borrowers have to know where and how to get it. To obtain a loan modification, you should understand the requirements and guidelines for the program before you submit your application. This will save you time and money in the approval process. If you are facing foreclosure, don't despair. There are billions of dollars available to help you; the trick is knowing where to look.