For anyone with an out of control ARM, perhaps in danger of losing their home to a home loan foreclosure, the quest for better loan terms is like a page out of Goldilocks and the Three Bears. The trick is to get the new loan terms just right.

But first some background: Banks don’t like foreclosing on home loans. They would rather keep a homeowner paying off the mortgage for the full term, usually 30 years. That’s a lot of time to not only receive a monthly flow of funds, but also to sell that customer on other financial products. Foreclosures cost money to execute, cut off that income flow and then saddle the bank with tainted property that’s harder to sell in any market, particularly the current housing meltdown.

Consequently, mortgage lenders are amenable to adjusting terms of the mortgage lower if they can still make a profit. But how low is too low? And at what rate is the borrower still spending too much?  Too little, too much, searching for “just right” is a Goldilocks’ journey.

This is where loan modification companies help holders of distressed home loans. The average borrower doesn’t know enough about the industry and specific lenders to negotiate to this point of “just right.” Most borrowers are so distraught they are lucky if they can manage the process of cutting through lender bureaucracy to even get a bank officer’s attention.

Loan modification companies operate on a fee charged to the homeowner, such that their only objective is to get the best deal for that borrower. They can examine a case before taking it on, such that they can predict a favorable outcome with high (90%) accuracy. Better firms offer a money back guaranty if they fail to deliver as promised.

To be clear, this is no children’s tale. Loan terms can be modified, but a professional is likely to achieve the best success for borrowers.