There is an important distinction that homeowners must be aware of: mortgage refinance versus loan modification. A mortgage refinance option is available for homeowners who are current on their mortgage, but want to take advantage of the new, lower market rates on mortgages. Refinancing rewards those who have proven themselves to be trustworthy borrowers.
On the other hand, a loan modification is for those who can no longer afford to make payments on their current mortgage, although they need not be delinquent when they apply for a loan modification. The loan modification is designed to alleviate the burden of a mortgage for those who are experiencing financial difficulty. The terms of the loan are modified in so that the borrower is paying less in the short term, but for a longer period of time.
When you signed your original mortgage, you most likely had an attorney present to read over every document and represent your interests, and your interests only. Plus, your attorney probably translated all of the legal jargon in the documents into plain English for you. If you want to refinance your mortgage, then you will want someone to represent your interests, to make sure you are getting the best deal, and those documents haven't gotten any easier to read since your last mortgage.
The lender is doing you a favor here, so there is no incentive for the lender to look out for your interests. Chances are, if you used an attorney when you signed your original mortgage, that same attorney will have a relationship with the lender that will ensure open and prompt communication between them. As in many legal situations, an attorney is never necessary, but is the best insurance policy you can buy should anything unusual arise.
