If you are a borrower and have not been able to pay the debt then you can approach your lender to give you some waiver or time so that you can pay off but if you are on the other side of the table and are the lender, the equations changes a lot. Whom can you approach if the borrower is not paying off his loan or debt and money is blocked?

In such situations you can take help from the debt professionals popularly known as debt collecting agencies DCAs who are highly trained to collect the debt without ruining your reputations.

• Hire a DCA which specializes in debt collection for the same type of business that you own.

• Check how successful the debt professional is to collect the debt. They should have a humane approach to collect the debt.

• Find out if they have in-house tracing facility available or not for the borrowers who are absconding.

• Find the payment options and check if they have ‘no collection-no commission ‘feature or not.

• Read their terms and all conditions before signing the contract.

Loan modification can be offered to any person who is falling back on his mortgage payments. The lender verifies through the agent of the borrower that he is equipped to pay the money if the mortgage structure is revised. Then he makes his offer, the only way out of short sale or foreclosure (unless a borrower is planning bankruptcy); if the borrower agrees to it then his loan is modified. Unfortunately, there is a dark angle as well.

Loan modification allows a brokerage commission to the broker of the mortgage deal. This is why he has his vested interest. This is why he tries to push you to a modification plan by charging you with foreclosure or short sale threat. While this still might not be the legal course for the lender, the borrower gets emotionally  failed down.

Even a cunning borrower can show a deliberate default to get the loan modified. This is why such restructuring needs to be evaluated properly.