Get Smart About Loan Modification: Dispelling Common Myths

We’ve all heard the news. The nation is in the grips of a housing crisis. Perhaps you have no need to hear about it in the news because you’re right in the middle of your own personal crisis, worried about losing your home or falling behind on payments. The good news is, though, that loan modification could bring an end to your worries.

If you’ve ever spent some time talking to acquaintances about ways to avoid getting a traffic ticket, then you know that common myths always seem to come up. Have you heard the one about the guy who refused to sign his speeding ticket? The court was unable to prosecute him and therefore unable to collect a fine. Though it may sound believable, it still isn’t true.

Just like myths abound with traffic tickets, the same is true of loan modification. Whatever you may have heard about it, it pays to contact a loan modification attorney before deciding on the word of hearsay that you won’t qualify.

Here are a few of the most common misconceptions regarding loan modification, along with a few truths that you can take to the bank — literally.

Myth: If you have poor credit, you won’t qualify.

The truth is that your credit score has very little affect on whether you qualify or not. This is because loan modification is not refinancing or taking out a new loan. It is simply modifying the loan that you already have.

Myth: If you’ve received a foreclosure notice, it’s too late to save your home.

Actually, as long as your house hasn’t been resold by the bank, they may still be willing to work with you. This is especially true in slower markets where houses don’t sell well. Banks often would rather work with you to get you to where you can afford to make payments again rather than potentially lose money by auctioning off the house.

Myth: I don’t need help getting a loan modification. I can just negotiate with the bank myself.

Technically, this isn’t a myth. You can try to negotiate a loan modification on your own. You can also represent yourself in a criminal case. In both cases, unless you are very well educated and experienced in the matter, the turnout is unlikely to be good for you.

A loan modification attorney understands the laws surrounding the process and has the experience needed to negotiate the best terms for you. You may even find that an attorney has ways to legally obligate a bank to negotiate even if they initially refuse to work with you.

Have you heard the story about the cop who forgot to put his hat on and therefore invalidated the ticket he wrote? Remember, just because you’ve heard somebody somewhere say something about loan modification doesn’t make it true. For the real scoop on how loan modification can help you, contact a loan modification attorney.