Today's economic climate is fraught with uncertainty. Nobody seems to know where we're headed. Every few months we hear that "hopefully the worst is over" or "maybe the housing market has reached its bottom." Unfortunately that hasn't happened, and economists agree on little except that the worst isn't over, and we very well may be looking at another couple years of this.

What is our government doing to help the 'average person?' Big businesses like banks, insurance companies and the automobile industry have all received their bailouts. Some have even dipped into the "cookie jar' more than once. An inadequate tax break doesn't do much to assist the person barely making enough to cover his mortgage, utilities, other credit obligations, and then feed his family.

Federal, state, and local government has put a good face on it by sponsoring loan modification initiatives. Unfortunately these programs are inundated with applications. They're ill-equipped to deal with demand, and in many cases unfamiliar with mortgage basics. At best they can provide a service that will gather the necessary financial information to apply for a loan modification with a lender, and then simply forward it to the mortgage company.

It's a very passive process on the part of the government-sponsored organization, and passive doesn't work when dealing with a bank. It's shockingly ineffective. A simple web search will reveal how appallingly bad these programs have been in providing relief for homeowners.

The other alternative presented to a distressed homeowner is to pay a third party company to help them approach their mortgage company to complete a loan mod. This is a better option then entrusting their home with a government employee that until a couple of months ago was working at the Department of Parks and Recreation, but usually considerably more expensive. These programs range in cost from $2000 to $3000, demand that they be paid in full up front, and in many cases come with no guarantee of success.

Mortgage companies would urge their borrowers to do none of the above, and simply allow them to do the loan modification. This is the same company that put their borrower in an untenable loan to begin with, and now that the borrower has fallen behind—and now that the mortgage company is trying to collect on a debt—would have the borrower believe that they will make everything alright because they have their borrower's best interest at heart.

The good news is that there is a better alternative. You can work with a nationwide credit organization that provides loan modifications for less than $200, and provides a success guarantee. They can provide a total solution for their members that include helping them re-build their credit afterward the loan mod. Bottom-line, do your research and find someone that guarantees their results without charging an 'arm and a leg' -they're out there.