No one ever said life was a bed of roses.  But who knew that the financial crises we’re facing worldwide would be a bed of thorns?

For anyone in a distressed mortgage, possibly facing potential foreclosure on their home loan, life is thorny indeed. It’s bad enough to suffer income loss, possibly illness or divorce – traditionally the primary reasons for bankruptcy and foreclosure – but throw in the difficulty of dealing with harried and distant home loan officers at your mortgage bank and it’s a formula for almost unbearable emotional stress.

The solution for millions is coming in negotiations for better mortgage terms. In fact, banks are not interested in owning anyone’s home. That’s a failure from their perspective as well.  It costs them money to pursue foreclosure through the courts, and when they own a property they are stuck with liabilities associated with it and selling in a difficult market. And you better believe that when a bank owns a house, the garden isn’t getting much attention.

Loan modification firms can handle the paperwork and negotiations for the homeowner.  In fact, many therapists, attorneys and realtors recommend it – by hiring professionals (loan modification firms are staffed by attorneys and home finance people), the outcome is more likely successful. In their industry, they know specific cost structures for the lenders such that they can create the win-win – better loan terms the homeowner can handle, yet still maintain an income to the lender.

Loan modification firms even know upfront what their success rate will be with more than 90 percent accuracy.  When contracting with a firm, ask for a 100 percent money back guaranty to protect yourself in an otherwise thorny situation.

Struggling against a bigger mortgage or because of a hardship (such as illness or loss of income) is the story of newspaper and television headlines every night.

But the media are missing an important, more hopeful part of the story. It’s how many homeowners are finding better mortgage terms with their banks, and it’s not just people with great credit and lots of money who take advantage of historically low prime interest rates.

In fact, borrowers in pre-foreclosure are getting a mortgage rate recast sufficient to retain ownership of their homes for the long term. They either are savvy at presenting their case to their lenders – compiling proper paperwork, negotiating effectively with bankers in the language they understand – or, they hire specialists in this area. The specialists are loan modification firms, staffed by lawyers, financing and real estate experts who are familiar with all banks’ positions and needs.

At the basis of this is how it’s not in the banks’ best interest to foreclose on properties. It’s a costly process for them, particularly in how they get stuck with property that is expensive to maintain and unlikely to sell in the near term.

Borrowers should expect to pay about $300, perhaps more, for the services of loan modification firms. Those firms should also offer a high degree of certainty they they will succeed, as they generally understand what it takes to do so. And if they take a case and fail, more reputable firms will offer a money-back guaranty.