Your chances of getting a loan modification that includes a principal reduction improves if the original lender did something wrong when the loan was originated. Unfortunately, Lenders are still not "voluntarily" reducing principle balances frequently enough to help many borrowers. While we wait for the Obama administration to effectuate its plans for solving the foreclosure crisis, hopefully by giving Bankruptcy judges the power to modify mortgages, the firm encourages all borrowers to have the original loan documents audited for predatory lending and Truth in Lending [TILA] violations. TILA was enacted by Congress in 1968 as a part of the Consumer Protection Act. This law is designed to protect consumers in credit transactions, requiring clear disclosure of key terms of the lending arrangement and of all costs. The Truth in Lending Act is intended to give consumers a price tag so that people can compare the "cost of credit". The law is intended and designed to reduce confusion among borrowers resulting from the different methods of computing interest, as well as to prevent fraud, deception and unfair business practices. Discovering a predatory lending violation gives people much needed leverage over the lender in the loan modification negotiation process. Rather then "pleading" with the lender for a break, victimized borrowers have the ability to sue lenders where rights have been violated. This threat often helps in the loan negotiation process. This is another reason why using a loan modification company or mortgage broker to handle a loan modification is foolish. These companies and individuals lack the legal knowledge to recognize violations and effectively negotiate "in the dark". Now is the time to obtain experienced legal counsel and to stay clear of the mortgage industry opportunists who helped fuel this foreclosure crisis.