Two weeks ago in part one, I related the us government foundation for recovering from the current mortgage and related economic situation. Last week in part two, I drilled down into the implications for the individual homeowner. This week I get specific as to the realistic potential of accomplishing a mortgage modification.

Here are three real-world critical points to understand:

First: Mortgage modification applications are not time stamped. The underwriter gets to order their workload any way they choose. The priority will be the file from a U.S. officer of the court, possibly accompanied by a U.S. federal marshal. (That would be the bright red file that the guy in the expensive suit just brought in. Not the FedEx guy, Post Office guy, or mail-room fax guy; each of whom brought twenty files today.)

Second: How much your payments may be reduced depends on the ability of the person negotiating your loan modification! Ultimately, real success is to convince the lender that it is in THE LENDER'S best interest to modify any given mortgage. There are rules for the Making Home Affordable Program that you can read on my blog, but who, other than a professional attorney, is going to hold the lender accountable?

The U.S. Treasury recently announced that they were going to spot-check certain lenders to ensure compliance with HAMP. That practice might be good enough for the IRS, but what distressed homeowner wants to bet on their mortgage modification application getting monitored? Also, if you use a free service, you're going to get what you paid for.

Third: the homeowner who wants to get to the front of the modification line need not submit a modification application personally or by an agent close to the distressed mortgage property. They need a professional close to the lender. (The attorney groups that I represent have nine offices across the U.S.)

The Rocky Mountain PBS station recently lamented that Colorado mortgage modifications were harder to negotiate because Colorado is so far removed from the hub of the mortgage crisis. This is a convenient but misguided excuse. The motivated, distressed homeowner needs an advocate sitting on the lender's lap, not where the property is located. A distressed mortgage holder need not feel inferior to the big-shot property owner in New York, or Los Angeles, or Chicago, or Miami, or Phoenix, or Las Vegas. Or Denver.

The fee for an attorney-driven loan modification typically pays for itself in four to six months. It justifies itself in the bottom line monthly mortgage payment. Consider that any missed payments get put on the end of the loan anyway. Hopefully, this fact would prod the distressed homeowner to get help sooner rather than later.

Just since the publication of part two last week, it was revealed that the mortgage industry was called to answer - again - to the federal government; as to the success of the HAMP program. Thirteen percent success in mortgage modifications is indeed predicted by November. The U.S. Treasury, Fannie Mae, and Freddie Mac all indicated this rate was just fine. Happiness abounds in Washington. Now, about the end of that line I mentioned earlier.......

Next week, in part four of four, I'll wrap up loose ends and provide answers to miscellaneous issues. Credit score implications, investment property modifications, second mortgage modifications, and what this ultimately all means in the real world to a distressed homeowner.

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Chris Dix writes and publishes his blog on mortgage modifications, short sales, and debt settlement at www.Mortgage-Mod-Monster.com. He also publishes www.Mortgage-Monster.com/Grand-Junction, a blog that reports on economic and employment opportunities; as well as mortgage opportunities on Colorado's Western Slope. Locally, he can be reached at 242-2600.