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 professional approach often means hiring professionals to do the work for you.

At a time when a homeowner is in pre-foreclosure or just worried that foreclosure will hit them in a few months, it may seem impossible to hire someone to help you out of this situation. But loan modification firms are structured to help people in the greatest need, those who are struggling to stop foreclosure on their homes.

These individuals need a rescue. But for foreclosure prevention to take place, the homeowner needs to have some income and still be able to prove their current mortgage terms are untenable. Loan modification firms can examine the individuals’ cases and figure out how to present it to the lender in a convincing way.

There’s no deception in this process. It’s purely a matter of knowing what circumstances trigger a bank’s interest. Most banks lose in foreclosures, so they are open to hearing the case. It just helps with the negotiator knows their language, has all the right documentation ready, and communicates without the emotions that homeowners tend to have around the wrenching dilemma of foreclosure.

Millions of Americans are in distressed homeownership situations, with ARM and other mortgage terms changed even while their income is reduced. Foreclosures and pre-foreclosures are words that appear in bank letters, certainly an emotionally-charged experience for anyone who thought buying a home was a smart, solid investment.

A bit of advice to anyone in this situation: think like a business. Remove your emotion from the situation as much as possible, and consider calling in consultants. Even the most distressed companies do this – they hire the accountants and lawyers and financing specialists who help them figure out their best options.

Homeowners in trouble have this option too: they can hire mortgage loan modification consultants. For a fee of roughly one month’s mortgage payment – 100% guaranteed, refunded if unsuccessful – the loan modification firm engages lawyers, accountants and financing experts of their own on behalf of the homeowner. They know how banks work, how to speak the language and become a preferred party to work with by loan officers – who are harried, otherwise quite busy with emotional but unprepared people in foreclosure. Loan modification specialists are in this business, and have brought favorable outcomes to thousands already in recent months – allowing homeowner to continue living in their homes, making payments at a level they can afford.

In recent years, the concept of homeownership has changed from viewing property as a long-term relationship. We used to consider our homes as places where one raises their families and receive grandchildren for visits under old trees that have grown big while a mortgage has gotten smaller, even been paid off. What homes have become since is financial instruments, a place to live, yes, but also a place to be sold for profit. The housing bubble burst certainly challenges that perception, yet we are stuck with a new legacy: the home as an investment that may or may not make money.

With millions of Americans in danger of foreclosure, there is an ironic twist in all of this. Rational decisions are clouded with emotion – a sense of hopelessness and confusion over what is happening.

Loan modification programs are available through most lenders. Banks don’t really wish to foreclose on a property. But modifications require time and some expertise in the legal and financial options that might be available. Every home mortgage, the property itself and homeowner’s ability to pay comes with variables. This is why home modification firms are stepping in, to assist distressed mortgage holders in finding their best outcome. For a fee of roughly one month’s mortgage payment, loan modification specialists might be able to significantly lower the terms of a mortgage, the monthly payment – and keep the homeowner in their home for years to come.

Despite all that’s been said in this economic and housing crisis, those grandchildren might come for visits after all.