It’s not too mysterious as to why there are so many people in trouble with their home loans. Sure, the recession and the high rate of unemployment is a main reason why people are falling behind in mortgages. But it is also a matter of loan language, for example the deception of ARM loans that blew out of sight for millions. Had the loan contracts been better explained, many people would have demanded better terms.

But given the situation we are in now, banks are singing a new tune — in language that means something. The fact is that banks lose in a foreclosure. Between their own legal fees, time receiving no payments, and reselling homes in a depressed market, the banks can lose $50,000 or more on a foreclosure.

Loan modification firms are stepping in to help – and everybody wins. They are lawyers and financial professionals who figure out recast mortgage terms that enable a homeowner to keep his or her home, even while the bank can still make money (albeit, less) on that home.

The key tool the loan modification firms have is they can cut through legal papers and case law in ways that most homeowners can’t. Just as important, they know the numbers — what a bank is facing, what they can afford, and how important it is to them to keep a customer.

Loan modifiers charge about a month’s mortgage payment upfront (some with installment plans), and provide a money back guaranty if they fail to achieve favorable terms. Their success rate is very high – more than 90% – so that’s a promise they can easily keep.