Mortgage loan debt relief for home loans in the United States primarily involves programs like the Home Affordable Modification Program (HAMP), Home Affordable Refinancing Program (HARP), and options such as principal reduction, loan modifications, and refinancing. These programs aim to reduce monthly payments, extend loan terms, or lower interest rates to prevent foreclosure. Tax implications, including canceled debt relief, must be considered, and homeowners are advised to consult certified housing counselors or legal professionals.

The effectiveness of these programs is supported by data from the Consumer Financial Protection Bureau (CFPB) and the U.S. Treasury. For instance, HAMP helped approximately 1.8 million homeowners from 2007 to 2016 by modifying loan terms, reducing payments by an average of 30%, and preventing over 1 million foreclosures (CFPB, 2017). HARP, launched in 2009, refinanced 3.6 million loans as of 2021, with borrowers saving an average of $250 monthly (U.S. Treasury, 2021). Additionally, the Federal Housing Finance Agency (FHFA) reported that loan modifications reduced default rates by 40% in 2020 compared to pre-pandemic levels (FHFA, 2021). The COVID-19 pandemic further highlighted these efforts, with forbearance programs allowing 3.8 million homeowners to pause payments in 2020, though 1.1 million entered delinquency by late 2021 (Urban Institute, 2021). Tax policies, such as the Mortgage Debt Relief Act of 2017, temporarily exempted up to $2 million in canceled debt from taxation, aiding 100,000+ borrowers in 2018 (IRS, 2018). However, long-term solutions require sustained access to counseling and flexible loan structures to address systemic risks like rising interest rates and housing affordability crises.