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.

There are a few good things happening for homeowners whose mortgage payments are currently beyond their ability to pay. The interesting thing is some have nothing to do with federal stimulus plans or the White House’s own plan to stave off foreclosures.

It helps to understand how banks don’t want to foreclose on properties. Really, they don’t. They don’t want to be property managers or real estate marketers. Especially in this very depressed market. They would much, much rather recast a loan, to keep a property producing payments for the life of the mortgage.

Next, understand why banks are hard to talk to. First, their loan officers handle hundreds of cases. With the economy being what it is, each loan officer is getting dozens of new calls every day from borrowers, many of whom are emotionally distressed and lacking both proper documentation and an ability to speak the language of banking and loans. It’s no wonder why few homeowners succeed at this on their own.

And, that’s where a new industry has arisen in this era to serve a very useful, valuable function. Loan modification specialists are intervening on behalf of distressed homeowners, going to bat for them with the knowledge they bring: legal, accounting and banking professionals generally make up the staff at loan modification firms.

The borrower needs to beware, however. Fees for loan modification should be reasonable. Expect to pay at least $300 (to negotiate terms that would reduce your costs by at least that much in one to three months), sometimes as much as $500. And the loan modification firm should offer a guaranty on their chances for success – the process is clear cut for those in the know, so they should be able to predict with a high degree of accuracy whether or not your case qualifies.

Borrowers who are already in pre-foreclosure can still use this service with success. The most beneficial act is to take the first step in finding out if you qualify.

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.

The president’s homeowner bailout comes at a critical time for the nation’s homeowners and economy overall. More than $275 billion will help a lot of people hold onto their homes, and the economy overall will benefit.

But not everyone is eligible for these loans. A number of criteria need to be met – in part because your loan has to be in the Freddie Mac or Fannie Mae portfolio, beyond the control of virtually anyone who’s received a mortgage in the past twenty years – which leaves many borrowers in the dark.

But there are other options for other homeowners. The key fact is banks do not, not, want to foreclose on any properties. It costs them money. They get stuck with a house to maintain and sell — in a tough market. They lose a customer they hoped to have for 15, 20 or 30 years.

Loan modification is the route for anyone suffering an adjustable ARM or other loan terms that are unaffordable. And because navigating the details with harried loan officers is daunting to most people, loan modification specialists are rising up to help. They are legal, financing and real estate specialists who deal with the banks on behalf of homeowners, for a fee (around $300-500), to achieve better loan terms. Already, thousands of families have found ways to stay in their homes with a recast loan through loan modification consultants.

Key point to consider: make sure your loan modification firm does not charge a fee without predicting a high degree of certainty that they can get you better terms. Reputable firms know the conditions that must be met by most banks. A preliminary review of your case will tell them what their chances for success will be. It is possible to stop foreclosure, even if it’s already in process through this approach.

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.

In this economic crisis, everyone wants to find a recast button. “If only we had made better decisions back when…” is said or thought in corporate boardrooms and at kitchen tables alike.

In fact, homeowners in mortgage distress are discovering they can achieve a home loan modification, actually negotiating better terms on their mortgage – good enough they can save their homes. The facts are that banks don’t want to foreclose. They are not in the business of owning, maintaining and selling homes – and are unlikely to unload these unwanted properties at their preferred prices in an historically low market.

But a large percentage of homeowners are uncomfortable with the loan modification process. They may not know they exist, or what can reasonably happen. The terminology is likely unfamiliar, and they fear they will make mistakes similar to the loan terms they agreed to at purchase of their property that got them in trouble in the first place.

This is why loan modification consultants are on the rise. Thousands of people have retained ownership of their homes, or exited with better terms, because they were able to use “loan mod” specialists. Legitimate loan modification firms can work around borrowers’ bad credit, assessing hardship and presenting a business case to the bank that helps all parties with loss mitigation. Their services stop foreclosure even in process, in some instances. Quality consultants will also limit fees to around $300 or slightly more, depending on the location, and not take a case until they’ve examined the details enough to proceed with high confidence.

Banks can be reasonable, if approached professionally, dispassionately and with an understanding of what they’re up against on their side of the equation.

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.

If you are “underwater” with your home mortgage – you owe more than you can possibly get from selling your house – it may seem like a desperate, no-win situation. Add to that in all likelihood, you cannot find a buyer anyway in this market.

But IF you could hold onto your house, if you could find a way to lower your monthly mortgage cost, chances are that house will regain its value and then some at some point in the future. Historically, real estate increases in value over the long term.

You would do best over time to hold onto that house. You need to recast the situation. You need mortgage refinancing, a loan modification plan.

So here’s your good news for today. Federal loan modifications are being worked out. Banks are open to figuring out ways for you to stay in your home. Why? They don’t want to own properties that are hard to sell. It costs them money to manage and sell homes – it’s not the business they are in. And they lose a customer – you, the borrower.

Still, the hassles of dealing with faceless mortgage companies is intimidating to most people. The guy or gal at the other end of the phone line has been dealing with desperate people all day long for months. Emotions run high and it’s hard for both parties to comb through the details.

These all add up to good reasons to engage with a loan modification program. They are legally and financially qualified counselors who become your advocates, experts who can assess your case before taking you on because they know what will and will not fly in renegotiating terms with a lender.

Be sure to work with loan modification specialists who can make these promises: no money down until their attorneys decide to take your case, that they work with a money back guarantee, and fees are reasonable (around $300 for a complete refinance loan package).

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.

Something had to give. People have been hurting for a long time but never this bad.

My sister works in the financial industry in institutional markets. I don’t even know what that means exactly but what I do know is that she used to make a lot of money. Because of this, she has this home that is worth a couple million (at least it looks that way). She also has a home in Vegas and also is helping out my mom with her home in Chicago. That’s a lot of burden for one person to take on but at one time it was a good bet she would do okay with the mortgages. Even though she is brilliant as a businesswoman, no one could have predicted that things would get this bad.

Now times have changed. I would venture to say because she knows a lot about banking she probably knows about loan modifications but looking at her situation it sounds like a perfect opportunity for her to recast her loans.

The biggest compliment I could even give to my employer would be referring family right? We’ll that exactly what I am going to do. So all I am going to say is if I would refer my sister to the company I work for, I would hope that you, the reader, would do the same.