He said that the extra interest and penalties could make borrowers ineligible for loan modification, making it harder for them to stay in their homes.

Loan modification companies can also inform homeowners of federal programs, which may be advantageous.

In order to expedite the loan modification process, homeowners may rely upon the services of a local loan modification company.

Privately held mortgages will be eligible for other incentives, including a favorable loan modification for five years.

These all operate under the paradigm of one-at-a-time or case-by-case loan modification, as opposed to automated or systemic loan modification.