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).