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.