Loan Modification has become the solution of choice for people facing unaffordable mortgages and foreclosure, but as the market for mortgage assistance grows, the number of misinformed homeowners is also rising steadily. A lot of people enter loan modifications with serious misconceptions, and end up making the wrong decisions, based on inaccurate information.

So how do you tell fact from fiction? Can a loan modification really stop foreclosure and solve all your mortgage problems? This guide shows you some of the most common myths about loan modification, and the truth behind them.

Myth #1: You can do it on your own.

Technically, you can—but it takes a lot more work and the results probably won’t be the same. Loss Mitigation is one of a bank’s busiest departments; a typical loss mitigation officer can handle as many as 800 cases at a time.

These people are over whelmed and do not have time to deal with your problem adequately. It’s not uncommon to be passed from one agent to another, and never get any real answers.

A loan modification attorney, on the other hand, can talk directly to your lender, and use significant leverage to get your file to the top of the agents’s stack. When a lawyer represents you, the calls get returned faster, you get more personalized service, and you gain the capability to actually obtain the type of loan you can need.

Myth #2: Your lender would rather foreclose than modify your loan.

In some cases, foreclosure is the more practical option. But according to a Tower Group study, lenders lose substantial money with every foreclosure, and are required to increase their reserves in addition. The banks already own too many foreclosure properties and have too many non-performing loans on their books. They would much prefer to adjust your mortgage to something affordable and convert your loan into a performing asset. Don’t be intimidated by threats of foreclosure.

Myth #3: You can’t stop the foreclosure process.

It’s true that your chances dwindle the longer you wait, but until your home is auctioned off, no one can really kick you out. A loan modification can stop the process as close as seven days before the sale date. This buys you enough time to get back on your feet while your lawyers work out a better arrangement with your lender. Of course, it’s always better if you take steps early on.

Myth #4: It’s an instant solution to mortgage problems.

Loan modifications really work, but they take time, the right expertise, and money. Depending on how far behind you are, the process can take anywhere from one to three months. But since it stops the foreclosure process, you won’t have to worry about losing your home while the modification is under way. If you submit your paperwork on time and cooperate with your lawyer, you can speed up the process and avoid complications.

Myth #5: You need good credit to qualify.

Standard requirements vary from lender to lender, but the bottom line is that the loan modification should make financial sense to your bank. Your credit rating doesn’t have anything to do with it. Your lender will want proof that falling behind was a temporary snag, and that you can afford to stay on track if they do modify your loan. This means you have to have a job and a valid proof of hardship. You don’t need to disclose your credit rating in most circumstances

Myth #6: Loan Modification companies are scams. Companies take your money, but don’t really do any thing.

In any business there are always some unscrupulous people, but you can find legitimate organizations that will help you. The important idea in loan modification is to work only with an experienced and knowledgeable law firm or attorney who has a track record of success. You should thoroughly check on the background of anyone who claims to be able to do a loan modification before you spend your money.

To get in touch with a good loan modification attorney you may call 800.738.1170 or visit http://www.cdloanmod.com