With all the attention around loan modifications coming from the press, the Obama administration, your lender, even your local barber or hairdresser. It’s no wonder a homeowner is confused and not sure what to do or who to turn to. Groucho Marx once said, “It’s a shame that all the people who know how to fix government are as busy as taxi drivers and hairdressers.”

So what does a struggling homeowner do? If you listen to the press, and that includes television, radio, newspapers and the like, you’ll hear all the commotion about the Administration’s new program that will save four or five million homeowners from foreclosure. Is it true, is it accurate? How do I get into what you think to yourself?

Therein lies the problem. What do you have to do and how do you have to do it?

So let’s be perfectly frank about this. One thing you should never, ever do is hire a so-called loan modification company. No no no! They will tell you all the things you want to hear and even promise to pay you back if they don’t modify your loan. Sounds good, right? Wrong!

This is why; they will first charge you between $1,500 and $5,000 or more. Second, they take forever to start their process. Third, they don’t do anything you can do on your own. And lastly (again), they take your money. All you have to do is search for loan modification scams and see what I’m talking about. It is a high growth industry that is full of non-professionals. Don’t get me wrong, there are some good companies, however, they are far and few.

The smartest thing you can do is complete a loan modification on your own. There are several excellent sources on the web to research and learn what you need to do and how to do it. Costs range from free to perhaps $100. It really isn’t that hard to do. Your biggest expense will be your time.

Also, there are some people in the loan modification industry who will tell you how important it is to use a professional to modify your loan. In one respect they are correct, but only if you are a procrastinator or don’t think you have time to do it. If you are a procrastinator, nobody can help you. However, if you think you don’t have time to do a loan modification, you’re wrong. You will still need to prepare and provide certain documents to the loan modification company. They are the same documents that you will provide to your lender if you are doing this on your own. Why pay for something you can do yourself?

Whatever your personal situation is right now, it’s never too late (unless foreclosure is complete) to help yourself modify your loan. You are in control, believe it or not. Your lender really doesn’t want your house. It costs them too much money and the loss they will suffer can be substantial. They want you to keep their home. This is how they make their money. You are paying them interest. That is your profit.

However, if you do your own loan modification, don’t take the lenders first offer. It is open to negotiations. Banks will rarely offer you your best option. Learn the facts about the self-help options discussed above. If you take their first offer, you’ll be damned if… you’ll be damned if you don’t.