Before I go on, I have to say that some legitimate loan modification companies do exist. They help those who may not speak English well enough to comprehend the steps and requirements of loan modification.

However, scammers outnumber the legitimate companies.

By convincing homeowners that they could never negotiate a loan modification on their own, they manage to extract anywhere from $250 to $1,000 from people who are living in fear of losing their homes.

Nothing could be farther from the truth. As long as you can speak English and can fill out forms and provide required documentation, you can do anything and everything a modification negotiator could do for you - if they even do anything beyond taking your money.

The success or failure of a loan modification request will depend upon the facts - your income, how much other debt you have, and your current home loan payment. The only other factor is your ability to pay the modified payment.

What is more dangerous to your financial future is the advice that some modification companies are giving. They're telling people to stop making their mortgage payments, and that can spell disaster. Especially when it comes to protecting your credit report.

Not only will it make you ineligible for Fannie Mae's Making Home Affordable Program, but it can be almost impossible for you to catch up. This move alone could result in foreclosure.

Some mortgage lenders are allowing homeowners who have missed payments due to being out of work for a few months to add the missed payments to the principal balance on their loans rather than try to catch up with a lump sum. But this addition increases the monthly payment, making it even more difficult for them to stay current.

So many consumers are having trouble keeping up with payments right now that many lenders have set up separate departments to assist them. Check your lender's website to find the number, then call and ask about the options available to you.

If you fear that you may be missing payments in the near future, make that call today. They really don't want your house, so will try to help you keep it.