Since the collapse of the housing industry almost two years ago, foreclosures have remained the number one concern for all homeowners in the U.S. who have a mortgage. Rising debt, pay cuts and an uncertain job market have put immense pressure on all families trying to meet their monthly mortgage requirements.

With millions of families already losing their homes, homeowners have been trying everything to avoid foreclosure. Although President Obama has announced his mortgage stimulus plan to aid struggling homeowners on March 4th of this year, it has done little to stop the rising foreclosures across the country. The Obama administration has even announced a new plan for families with second mortgages and it remains to be seen whether these new measures will help homeowners save their houses.

Families who are finding it tough to pay their mortgages on time must try to get their loans modified immediately to try and stop the lenders from filing a foreclosure notice. A loan modification will allow the banks to give the homeowner either a new monthly payment plan or a revised interest rate which will help them meet the mortgage requirements until their situation improves. Most homeowners feel that if they are having difficulties in their payments or have taken pay cuts in their jobs, they do not qualify for a loan modification and hence avoid applying for one.

However the fact remains that if a homeowner is experiencing a difficult time, it actually increases their chances of getting the loan modification application approved as banks can see a genuine hardship on their part. Homeowners can decide to apply for a loan modification on their own or choose to enlist the help of a qualified consultant in the field. It is always better to apply via a loan modification consultant as they will be in a much better position to negotiate with the bank on your behalf. Although it will save you a lot of time since you won’t have to constantly follow up with your lender and chase them down to know the outcome of your application, you also improve your chances on getting the best modification for your situation.

If you do choose go to with a consultant, just make sure that you do not agree to pay any kind of upfront fees. Unfortunately since there are millions of homeowners in distress right now, it has given rise to many fly-by-night companies who take money from homeowners and disappear without actually applying or even calling the bank for a loan modification application. Another problem with paying money upfront is that since there is no guarantee whether your application will get approved. Thus, you are losing a lot of money immediately which could have been used to meet your household expenses.

The ideal situation for a homeowner would be to contact a loan modification consultant who will charge their fees only once the loan modification application is actually approved by the bank. This means you are not losing any money in the event your application is rejected. At the same time, your chances of approval go up as the consultant would be able to negotiate with your lenders and make sure you get the best possible new mortgage plan based on your current situation.