You as a homeowner are probably wondering if you should start the mortgage modification process now, or wait until tomorrow when President Obama releases the modification plan.

Put into perspective that there are millions of people (or more) out there that are wondering the same thing. You not acting fast could result in a wait that is getting longer by the day. It’s almost a given that once those details are released, mortgage lenders will be swamped with calls.

In this time of crisis, refinancing is no longer an option for many people and mortgage modifications are the way to go. I realize the loan modification process can be confusing and hard to understand since there are many steps to getting your loan approved. But don’t let this discourage you. if you think you may need a modification, chances are you do. Take action today; do your research, get on the internet, call around and ask questions and get your application submitted as soon as possible. Once Obama’s plan is released tomorrow, lines will grow increasingly longer causing the homeowner to become even more anxious.

Take this like going to an amusement park. You want to get there early enough so you don’t have to wait in line for all of your favorite rides. It’s that simple - get in line as early as you can to beat the crowd. Some lenders are estimating this month that modification could take up to 4 months to be completed. Others are guessing 6-8 weeks. If you are worried (that) you wont (won’t) qualify then there is only one way to find out; call, call, call.. Don’t be mistaken, waiting could mean months of time you may not have.

Just keep in mind, lenders are trying a great deal to get their client’s interest rates lowered and have their payments reduced. Not all that inquire will qualify, which could make you move up in the line. Tune in tomorrow for the details on Obama’s highly anticipated plan. Many questions will be answered but take note this is not a miracle maker. It is simply a step in fixing the housing crisis in this country. Tomorrow could mean however, a defining moment in the housing market crisis.

Is it possible to stop a foreclosure if you’re not able to make monthly payments?

Possibly yes. An underreported aspect of the nation’s housing crisis is that banks really don’t want to foreclose. It’s a failure on their part, to have to take possession of a property, manage it and try to resell it. Especially in this market. They have to engage lawyers and real estate specialists in the process, and they lose a customer.

But with loan officers themselves handling 800 cases each, on average, it’s no wonder that homeowners in default don’t hear about the recast options. Cutting through voice mail purgatory takes weeks, and if the borrower lacks full information and documentation, the loan officer might not be very patient with the erstwhile distraught person facing loss of their home.

Fortunately, specialists in the area of loss mitigation – people who understand the laws of lending and real estate contracts – are now negotiating on behalf of homeowners. They are successfully finding ways to get banks to reconsider loan terms, achieving better mortgages and lower monthly payments for thousands of people.

The media likes to focus on the negatives in this economic downturn. But the business of loan modifications has so far gone underreported.

Borrowers are advised to withhold payments of fees – which range from $300 to about twice that, depending on location and circumstances – until the modification specialist can predict an outcome with a money-back guaranty. The process is that straightforward, such that they can predict with fairly good accuracy if a loan can be modified and a foreclosure halted.

There are second chances, even in this economy.

And what may come as surprising to homeowners in distress, even those in “pre-foreclosure” when they are behind a month or two in their mortgages, is that banks don’t want to foreclose on them. Which makes sense when you think about it: a bank does not want to own a house or condominium. It’s not their core business. And this is a lousy time for them to try to sell anything.

This is why banks are willing to negotiate loan modifications. And while an individual can call a lender and ask about a home loan recast, quite often the homeowner doesn’t even know what can be achieved in such a process. It’s an emotional time for many, and they may get “lost in the sauce” so to speak in terminology.

Thousands of homes have been saved already, where the owner continues to hold title, living in that place they call home, due to loan modifications. For a large percentage of these homeowners, the work was actually done by a loan modification specialist, generally a firm of experts in real estate law, financing and lending. They charge a fee – expect to pay around $300, more or less – which may be less than a single month’s savings once the modification is complete. They should determine in advance if a case will succeed with a high degree of certainty, based on their past experience with major lenders.

Modifications therefore represent a win-win: banks keep borrowers as customers, customers keep their homes, and neighborhoods even gain with one less foreclosure bringing down property values.

It may all seem like bad news on the economy and housing crisis. But there are bright spots here and there that can make a difference.

First, anyone in the foreclosure process does not need to consider it a done deal. In fact, thousands of people facing hardship with unaffordable mortgages are negotiating better terms on their mortgages, enough to retain ownership at lower monthly payments.

Second, banks are willing to discuss any terms other than foreclosure – short sales, or deed in lieu of foreclosure – because foreclosure itself is an expensive process for them. And in the end, no bank wants to own homes that are hard to sell in this market.

The problem for many borrowers, however, is that they don’t know the ins and outs of loan modifications. They are intimidated by bank terminology, and are dealing with very rational processes when in fact their emotions run high and cloud the conversation.

Loan modification specialists – expert in financial and legal issues of real estate and lending – now are arising to help borrowers in distress. This is an underreported bright spot in the troubled economy, yet available for anyone wishing to take advantage of it.

Mortgage financing might not seem a likely option if you have lost your job, have bad credit, or a home that’s “underwater” – worth less than what you owe on your adjustable ARM mortgage.

But in fact none of these circumstances mean you can’t recast the terms of your mortgage. Because of federal loan modifications initiatives, mortgage refinancing is now possible. Why?

• Banks don’t want to own houses. They’d rather keep you as a mortgage-paying customer over many years.
• The economy overall suffers when people lose their homes. Society is more stable when people own, and still have money leftover to buy other goods.

This is why loan modifications are the new and effective solution for many people. It’s possible to negotiate terms on your own, but many housing advocates are encouraging homeowners to engage a third party, an independent loan modification company that is expert in negotiating with banks. They know where banks are coming from, the terminology and the paperwork process. They charge you a one time fee – look for around $300, a reasonable amount that enables them to make some money without soaking you in your sometimes-desperate situation – and will only take your case after examining your situation and circumstances.

So yes, there is a way to get mortgage refinancing, to stop foreclosure, to work with hard money lenders in ways that enable you to hold onto your home – despite problems with income and credit.

A few minutes spent investigating your options today might mean years of emotional satisfaction in the home you already own.

There is strength in numbers. If you are one of the millions of American homeowners with a crushing home mortgage that you may not be able to handle financially – with foreclosure a real possibility – there are numbers working in your favor. Consider these facts:

• Banks don’t want to foreclose. They would much rather have you as a long-term mortgage customer than take ownership of your house. They lose money when that happens.
• With so many houses in danger of foreclosure, the government and banks and housing advocates are searching for solutions.

Right now, the path that hundreds of thousands of people are following is loan modifications. What are they? You hire an advocate for you, at an affordable one time fee (around $300), who will be your intermediary with the bank. They develop workout plans that can enable you to stay in your home, to continue owning it, at reasonable mortgage terms.

Whether it was an adjustable ARM, loss of a job, a mortgage refinance under bad credit circumstances when you purchased, or other factors that created your current situation, a loan modification company will be able to identify your chances for refinancing BEFORE you spend one thin dime.

It’s really a no-lose proposition to investigate this option. A few minutes doing your research today might mean your home will be yours years from now, and that you will have money leftover to live a good life along the way.

Is an adjustable ARM your most regrettable decision in recent years? Do you wish you could workout plans that could give you foreclosure protection? If so, you need to find out about Federal Loan Modifications – the government sponsored program designed to help homeowners recast the terms of their mortgages and save them from foreclosure.

Most of us work on a simple, solid equation in life: Work hard, be responsible, pay your bills, don’t buy what you can’t afford. In there is the basic American belief that it’s best for you, and the world around you, when you own your home instead of renting.

In fact, it’s built into our tax code that the homeowner is given a break for having a mortgage, something a renter never sees. And we all know the stories of parents and grandparents whose homes are worth twice, five and even ten times what they paid for theirs. Your home was supposed to be a piggy bank.

So how did buying a home in the 21st Century turn into a mistake? It was the responsible thing to do. You were told you were a fool to pay your landlord money month after month, never to see that money again. So you saved a down payment, bought, and went to work fixing up that house into the home you would live in for years to come.

Then came the housing crash. And the high unemployment. And then maybe you lost your job, or found costs of ownership were higher than you expected. Foreclosure loomed, and it’s a thought so unpleasant it wakes you up in the middle of the night.

You didn’t act irresponsibly in any of this. You have technical glitch. You need a technical fix.

While not the magic wand that someone waves to take away all your problems, loan modifications are at least the beginning of finding answers. It might be just enough to enable you to save your home — to stay where you are at, give you time to weather the economic storm, to maintain stability in your life and that of your family.

No one benefits if you lose your home to foreclosure. It’s a problem for the banks. It’s a problem for your neighborhood. It’s bad for the economy overall, and certainly, it’s devastating to you and your family.

A new loan/refinance plan may be available to you. It costs nothing to find out – do it today, so maybe you can sleep better tonight.