The following tips are not legal advice:

1.-You do not need an attorney or a third party to negotiate a loan modification with your lender. In fact lenders are more open to talk to the principal than a third party.

2.-You have to have documented income in order for them to consider you a candidate for a loan modification. This makes sense because no matter how much they lower your payment, you have to be able to make the monthly payment.

3.-The realistic income to debt ratio is 36% to 38%. In other words, your documented monthly income has to be a little bit more than three times your new lowered monthly payment. If your income is a lot more than that, then you do not need help an your bank will not consider you as a loan modification candidate.

4.-You do not have to be in foreclosure or late in order to be considered for a loan modification candidate. Some lenders are being proactive and trying to resolve the problem before it becomes inevitable. It is true that they will give priority to borrowers that have missed several payments an the ones that have variable and increasing monthly payments, but they will also consider other hardships.

5.-Do not pay upfront fees as the loan modification can not realistically be guaranteed to be successful. Only the lender and you are authorized to agree on the new terms of the loan modification. Other third parties can not force the bank to accept the loan modification. Remember, the loan modification is a voluntary option that you and your lender have. It is not an obligation by the lender.

6.-Always ask for credential from individuals that represent themselves as loan modification experts an always ask for at least two additional professional opinions.

7.-If the "expert" is demanding an upfront fee without any credible or realistic guarantee that the loan modification has been accepted by the lender, It is best to walk away.

 8.-Do not transfer your title to third parties, and always confirm with your lender that the third party representing you is continuously calling the lender to update the lender with required documentation like the hardship letter, financial worksheet, income tax returns, profit and loss statements and other documents the lender may need.

9.-Sould you agree to pay upfront fees to any third parties to represnt you in a loan modificaiton, demand a copy of the prepaid fees authorized or approved by the departement of Real Estate or any other authorized government agency.