An unreported phenomenon in the home foreclosure crisis is how millions of mortgaged properties are being saved from foreclosure when the homeowner works with a loan modification firm to recast the loan.

By calling in specialists in law and financing, the homeowner is making a deft move to take advantage of banks’ own vulnerabilities. Banks suffer when they foreclose on a property. They don’t profit by having to manage the properties, trying to sell them in a down market, usually at a loss. And they lose a customer they expected for 20 or 30 years.

Loan modification firms that are reputable offer homeowners in pre foreclosure or foreclosure a reasonable package: fees of around $300 per loan, no added points or other hidden fees, and a money back guaranty should they not succeed at getting a better deal for the borrower. In fact, a good loan modification company is so versed in what they will negotiate with lenders that they will not take a case or a fee without a high degree of certainty.

Note these arrangement are not waiting on government action. The homeowner and their loan modification firm are operating privately, with no government strings attached.