After just attending a legal seminar from a top local attorney, I learned a few things about loan mod's that you should know about.
1) Lender's don't like dealing with loan modification companies. They figure if the borrower doesn't have the money to pay them, how can they afford to pay a 3rd party company?
2) Some loan mod companies have had borrowers sign Power of Attorney documents enabling the company to sign on the borrower’s behalf. After the dust settles and the loan has been modified, some borrowers are finding that the loan modification merely took the amount that was past due and added it to the principle while keeping the payment and interest rate the same. If the borrowers couldn’t afford the loan in the first place, the problem repeats itself.
3) There are some good companies out there, but be careful what you sign!