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Just last week, President Barack Obama implored Americans to refinance their homes. The President’s plea may be too late for many people who are looking for ways to save their homes or to stop foreclosure.

The real issue is whether most Americans can obtain some form of mortgage relief during these rough economic times. The facts are sobering. Yes, we are now in an era of record-low interest rates. However, the people who need the most help are no longer eligible to simply refinance their homes. These homeowners were probably locked into their mortgage rates when they were 2 to 3 percentage points higher. Meanwhile, millions have lost their jobs, others have seen salary reductions and property values continue to decrease each month.

For those who have been a victim of today’s rough economic woes, it is easy to feel as if there is no hope. Thankfully, other forms of mortgage relief are still available for many.

Anyone with a decent credit score and a steady income should immediately refinance their mortgage. 30 year rates are in the 4.75% range on any given day. Seeking to lower your payment is a no-brainer. But, the catch is that many people simply do not qualify.

In the past four months, banks have raised their minimum credit scores by 40 to 50 points. You practically need perfect credit to get the best rates. And, even if your score is high enough, you had better be able to provide proof of steady employment. That’s the first problem. Self-employed? You may be left out cold. Had a brief interruption in work? You lose.

Consumers used to be able to drop to a lower payment and rate upon a simple filing of a loan application. Today, it’s not so easy. One interruption of income, one bad hit on your credit profile, and you may be toast!

Furthermore, with property values decreasing throughout most of the country, even those who qualify for a loan may find they have no equity (or not enough) to make a refinance even possible.

Where is the hope? How about a loan modification? You may recall that President Obama was pitching this action just one month ago. This is a great option for people who have seen a change of circumstances and can no longer afford their mortgage. Perhaps your household lost one income, or you took a cut in pay to remain employed – or to get a new job. Homeowners will need to prove that they can afford their home, even if they can no longer afford their present mortgage. And, the federal government has provided an economic incentive to mortgage servicers to modify mortgages for people in this situation.

The government estimates that over 7 million people may benefit from a mortgage modification. The people who need this are the people who have seen their rates adjust and payments increase, or the people who no longer bring in enough income every month to make ends meet. The goal is to reduce your mortgage payment to be about 35% of your monthly income. (This may come in the form of reduced payments, reduced debt or an extension to the loan’s term.)

Obtaining this relief will take some persistence and skill. You can proceed alone, and approach your mortgage company. However, be prepared to present a clean package proving income, assets, liabilities and the change of circumstances that has led to the request for a mortgage modification. In essence, you need to be prepared to present a legal case to a tribunal of unseen judges. If they like your case, you may get some relief.

I advise people to hire a lawyer in order to obtain a loan modification. Homeowners need an advocate in this process, and the “know how” of people who can negotiate and advise them on all available options.

It’s not enough to call your bank and just ask for a loan modification. You have to know who to approach, what strategy to pursue and how to present your case. Hiring a lawyer is often the key to success. An ethical lawyer will not charge an excessive fee and will look out for YOUR best interests. (A lawyer will also be able to tell you if you are NOT a candidate for a loan modification – without even collecting a fee.)

Beware of companies who specialize in mortgage modifications. These schemes are often accompanied by extremely large fees and unrealistic promises. Many states have now started cracking down on these companies. This problem is typical, as it is usually the people who need the most financial help who get preyed upon by the hucksters. If you need help, the use of an attorney makes the most sense. Attorneys are accountable for their actions.

Many good people will be threatened with losing their home in the next year. Loan modifications are a great solution. Get some good legal advice and proceed. Don’t be shy. Mortgage lawyers will welcome you and your questions.

Another avenue of mortgage relief involves a thorough analysis of the original loan itself. A lawyer who is skilled in mortgage law should be employed to study all of the documentation that led to the loan. Were there broken promises? Did the loan close as planned and by the book? Often times, people were put into loans they could not afford, into adjustable rates they did not know existed, or into other terms that were a complete shock and surprise.

A lawyer well-versed in mortgage law may be able to not just reverse the transaction. He or she may be able to convince the mortgage company to provide you with a loan that you can actually afford, or to wipe away a portion of the accrued debt or interest. The ultimate goal is to save your home one way or another.

A loan review is a sensible option. Let someone evaluate whether the loan was lawfully made. Are their legal loopholes or other problems that can work to your benefit?

Escaping foreclosure does not have to come in the form of bankruptcy. That option should be the last resort. The best bet is to get some reliable advice and proceed ready to fight.

Homeowners who cannot afford their mortgage have many options. Mortgage relief comes in many flavors. Know your legal rights, get some good counsel and do not give up.

David K. Stein is a mortgage lawyer in Columbus, Ohio. He is Senior Partner of Stein Chapin & Associates, LLC. www.steinchapin.com. David has been handling consumer related cases for more than 19 years. Send him an e-mail at [email protected]