The oversupply of housing is affecting distressed homeowners in a multitude of ways. For many who can’t keep up with their mortgage payments, they are in an “underwater” situation – the sale price of the home would be less than the amount owed. To walk away from their home, they still would owe the bank money. Further, the neighborhood overall sees a drop in their prices with each foreclosure, and the problem multiplies with other people living nearby.

It benefits everyone if a foreclosure can be stopped. Especially the banks, the lenders. They stand to lose about $50,000 per foreclosure in legal fees and the business of owning and reselling the property.

This is why banks are willing to cut better deals with homeowners who otherwise face a loan foreclosure. The bank is willing to settle for less money that is still better than that $50,000 loss they would experience. But most homeowners do not understand how to go about a loan modification – it gets little attention in the media, so most people don’t even know about them.

Enter the loan modification professionals. These are lawyers and home finance people who know the industry very well. They can efficiently examine a case, look at it in comparison to the bank’s position, then negotiate the solution to the homeowner’s favor. Reputable loan modification companies will charge a fee of around a month’s mortgage payment, and provide a money back guaranty if they are not successful.

It’s a solution to the housing crisis for millions of homeowner, their neighbors and their banks.

A relatively new phenomenon in the home loan foreclosure crisis is the trending toward loan modifications. Not exactly a refinance, loan modifications are when the bank determines they will work with a mortgage holder in distress (usually, in foreclosure proceedings) to find payment terms that are more manageable to the borrower.

The reasons for the borrower being in distress can be many: ARM adjustment that goes beyond the borrower’s repayment potential, loss or drop in income, illness or divorce are among them. What the bank would prefer to do – as does any neighborhood in the vicinity of the property in foreclosure – is stop the foreclosure. A bank stands to lose as much as $50,000 on average when a homeowner loses their house. Why? Legal fees, staff time spent on property management and reselling the property in a depressed market all add up to costs to the bank. They’d rather keep the customer paying for years into the future. The neighbors don’t want a foreclosed property either because it devalues their home values too.

Home loan modifiers, third party intermediaries, can smooth the process for the homeowner and get them a better deal. They work on a one-time fee basis, generally a month’s home mortgage payment, to review documents and then approach the loan officer with an offer. They have industry insider information that enables them to project with good confidence (90 percent accuracy) if a bank will deal, and at approximately what amount. If the modifier is unsuccessful, that fee should be refunded.

All in all, it’s a win-win-win for homeowners, lenders and neighborhoods.

A fact that is not reported very much is how banks stand to lose an average of $50,000 on every property they foreclose upon. In other words, banks have incentive to not foreclose on property, even if it means changing the terms of the mortgage in favor of the homeowner.

In fact, millions of people with distressed mortgages from accelerated ARMs, income loss or other difficulties are having their mortgage recast in their favor. It’s largely a matter of talking to their lender, explaining their circumstances and hitting a number that is easier for the borrower and still profitable for the bank.

Of course, this is not an easy negotiation for anyone who lacks facility with legalese or the mathematics of banks. This is why thousands already have hired a loan modification firm (lawyers, accountants, mortgage industry specialists) to handle this negotiation for them. The loan modifiers look at the facts of the case, at which point they can predict with a high degree (90 percent or higher) of confidence as to what the outcome will be. Homeowners pay an upfront fee equivalent to one month’s mortgage payment, more or less, which is refunded to them if the loan modifiers are unsuccessful in that effort.

Home loan modifications are also an underreported factor in the current housing crisis. Even homes in foreclosure proceedings can halt that process with a loan modification.

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.

Any home purchased in the past three years, since 2006 or earlier, has likely declined in value anywhere in the U.S.  In some cities, home value drops are greater than others. Add to that home mortgages with ARMs that have adjusted upwards and the dilemma of distressed mortgages is easily understood.

Of course, any homeowner in this situation may well be distressed under otherwise normal circumstances. But now, with massive job losses and cutbacks in hours worked for those who still have their jobs, it is clear that adjustments need to be made. The government is working on bailouts for homeowners, which will apply to some people. But others may not be eligible, or that help will come too late.

But any homeowner in difficult and unmanageable circumstances, even those in the process of a home loan foreclosure, may be able to work their own solutions out through a home loan modification. Either they, or more often their representative in a home loan modification firm, can deal with a bank directly to find a lower interest rate or other terms that bring the mortgage back into affordability once again.

Professional loan modifiers are generally teams of lawyers and finance specialists who understand the mortgage industry enough to predict success at loan modifications before contacting the bank. They charge about a month’s mortgage payment and, if reputable, will provide a 100% money back guaranty if their efforts fail to provide satisfactory modified loan terms.

It’s a fact: loan officers at banks typically deal with 700 borrowers each. This means that they really don’t have a lot of time to deal with anyone facing possible home loan foreclosure or other financial distress due to a bad ARM, income loss, illness, divorce or other such situations.

Which is unfortunate, given the effects of the recession and housing market slump. Because if they had the time to look at each individual case, they may well be able to determine ways for the mortgage to be recast, to settle in at a favorable rate that will enable that homeowner to keep his or her house and continue making payments.

Why would they bother if they had the time? A home loan is recurring, monthly income to a bank. Plus, they like to have loan customers over the long haul because those customers ultimately might do other business with that bank. And when banks take possession of houses, they ultimately lose. The process takes up staff time, and then the maintenance and sale of the house generally drives them into a net loss. Banks don’t want your home.

Loan modification firms are stepping up to the plate on behalf of homeowners. They are independent lawyers and accountants, finance experts who know what terms a bank will still find worthwhile — lower monthly payments don’t necessarily mean a loss to them.

For any homeowner to engage the services of a loan modification firm, it is essential that they check the terms of THAT arrangement. The firm should charge a flat fee – one month’s mortgage, approximately, and no points or recurring fees. They should also provide a money-back guaranty. This is because they usually know with a high degree of confidence that they will succeed on a case before taking it on. Better firms are also offering an installment plan, allowing the homeowner to pay the fee in more than one payment.

With a home loan modification firm working on your behalf, you’ll rise to the top of the loan officer’s 700 cases and get action relatively quickly.

There is a sense of powerlessness to any homeowner who is falling behind in their mortgage payments. It seems that the system and circumstances – big bad banks that want to foreclose on your home, because of a bad economy, ARM increase, job loss, illness or a lousy housing market – are all working against you.

But in fact banks and other lenders don’t want you to lose your house. They don’t want to own it and they don’t want to lose you, their customer. If you were able to keep paying every month, that’s a positive cash flow for them. And when stuck with a foreclosed-upon home in this depressed market, they will likely lose money in selling it.

This is why loan modifications are being worked out for thousands of homeowners. A loan modification is a recast of mortgage terms, generally resulting in a lower monthly payment that allows the borrower to stay in their home and continue holding title. But most borrowers are not familiar with this option, and much less don’t know how to negotiate it.

Home loan modifications help fill this gap. They are professionals – lawyers, accountants, home loan finance experts – who know inside industry information on what a bank will be willing to do. They know that point at which a deal is a winner or a loser for a bank. So their job, working entirely on behalf of the homeowner, is to hit the lowest, most affordable terms possible while still satisfying the lender that this mortgage will be good for them over the long haul.

It’s really rewriting a mortgage, always to the benefit of the homeowner. This is something rarely reported in the media, which tends to focus only on the negative.

Note: working with loan modification companies should carry no risk. The better loan modifiers know with high certainty what success they will find once they examine the specifics of a case. And they should offer a 100 percent money-back guaranty in case they are not successful. Fees generally are around one month’s mortgage payment, not points or a recurring expense. Many firms are allowing fees to be paid in installments.

At its best, a challenging economic situation such as a home foreclosure is a minute-by-tense-minute adventure in the world of Economics 2009.  When your life is a lot like what’s being reported on the news, you at least know it’s a drama being played out in homes all across America.

Of course, a home mortgage foreclosure can have tragic consequences for anyone who bought a house or condo in good faith that ownership was laudable and affordable. But things changed rapidly in the past two years, such that illness, divorce, income loss or reduction and ARMs blown up out of sight are factors that may seem impossible to overcome today.

There are solutions, however, but they’re probably too boring to make the news. Certainly, the solutions wouldn’t make it into a screenplay. These solutions come in the form of loan modifications – a recast of the loan terms that help homeowners keep their properties at lower monthly payments.

To engineer a loan modification is daunting for most individuals who are not real estate lawyers or mortgage experts themselves. Bank loan officers are busy handling hundreds of cases and thus don’t have a lot of time to talk to individuals to explain the process for them. But a loan modification firm handles it for them. For the price of about a month’s payment, a loan modification company can use industry insider information to know what new mortgage terms the lender would agree to.

If considering working with a loan modification firm, check their policies, features and success rates – all usually published on their websites.  Look to see if they provide a money back guaranty if they are not successful. I particular, see if they offer an installment payment plan for their services. This is crucial to any financially strapped homeowner.

Many homeowners in or near foreclosure proceedings are unaware that the terms of their mortgage can be changed, even at a late stage. A bank/mortgage company will do this if they see a lender is able to make payments if the monthly payments are lowered.

Why would a bank do this? This is simple: a bank does not do well owning a house, particularly in this housing market. They are stuck with property maintenance, liability and the process of selling it again. This is not what banks do, and often they lose money in such situations. 

The question is where does a lower monthly payment and other mortgage terms, for example going with a fixed rate in place of an ARM, still beat the lower revenue the bank will get from a recast mortgage? An average homeowner is not usually able to figure this number out on their own. But when a professional mortgage loan modification firm is engaged, they are able to use their experience and industry information to come up with a number that is beneficial to all parties. It’s truly a win-win solution.

The better loan modification firms charge approximately one month’s mortgage payment on a property as their fee for service. And those experienced firms will know with a high degree of certainty – 90 percent, usually – in advance whether they will succeed at renegotiating the mortgage terms to a successful outcome. If not, the homeowner should be provided a 100 percent money back guaranty, thus making it a no-lose proposition for that individual.

If you are looking for relief from your mortgage we are here to help. The housing market is down and people all over are trying to find ways to patch up their mortgages. It is very difficult to pay for something that costs more than it is worth. I wouldn’t want to walk into a candy store and pay fifty dollars for a pack of tic tacs. In reality this is what you are doing. Stop throwing away your money every month. No one has enough money to be throwing it away. People are loosing jobs by the thousands. It is getting harder and harder for people to pay for their mortgages. Wouldn’t it be great if there was a company that could lower your interest rates and payments? Well there is and that is us. We are here to bring you relief to your mortgage. Whether you are facing Foreclosure or simply worried about your mortgaged because of the rates, you need to call us about a loan modification.

You may be facing some of the following problems:

- A loss in income

- A deduction in pay

- Medical issues

- Separation or divorce

We can help relieve these problems. We take the proper action in getting you your mortgage rate lower. We have expert lawyers and negotiators that work on your side to help your situation. It is hard for people to think that they could possibly loose their home. Well it is possible. You need to have professionals do everything they can in your behalf. Instead of representing yourself have experts that do this night and day take care of this sensitive issue.

We can negotiate with your lender to keep your loan. We work with the bank to lower your interest rate, and payments. There is mortgage relief you can expect. Feel completely in control with our success rate of 98% of the cases we handle. We also offer a 100% money back guarantee. This is something no other company can offer. We are here to save your home and get your mortgage back on track. Don’t let this wait any longer. Stop paying for things you don’t need. Get this resolved today by giving us a call. It could take only one call to change your life.