There may come a day in the not too distant future when financial intermediaries can be hired to work on all matters for individuals. The reason for this is evident in the home loan mortgage crisis currently threatening the economy overall and millions of Americans who are in danger of losing their homes.

Home loan modification firms are now rising to help persons in distressed mortgages. They are lawyers and finance specialists who understand the position of banks and other mortgage lenders. They know that a bank does not want to lose a customer, nor are they interested in owning individual properties. It consumes staff time, an expense, they are stuck trying to sell homes in an undervalued market, and they lose a customer. Foreclosures are losers for banks, and home loan modification experts understand how to leverage that to the homeowner’s advantage.

Of course what led to this is how many borrowers did not understand the terms of their mortgages. This may be an ARM that increased dramatically over three to five years. But also many households expected to continue employment, that there would not be such a deep recession as we see today.

Loan modifiers work on a fee basis, not tied to “points” or other factors related to the new mortgage terms. They generally charge one month’s mortgage payment — as they recast the mortgage terms for 30 years into the future (a significant savings over time).  If they are not successful – an unusual situation, as loan modifiers usually know with 90+% certainty what their outcome will be – they should refund this fee to an unsuccessful homeowner.