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The best residential home relief is a Principal Balance Reduction. To explain, most homeowners when facing foreclosure are referred to the Residential Home Relief Program or the State Housing Development Authority of their State when facing preforeclosure. If one has experienced a hardship, is of low income, and/or is of minority status, this program sponsored by the Federal Government may be helpful in assisting a homeowner save their home from foreclosure. Many of these loans that can be modified are either FHA or VA type loans.