There are many agencies that provide free loan modification assistance. But you are right, I have heard from clients that have used such agencies and they have never received help on an individual basis. Due to the shear work load they have, the process can be time consuming. The best way to go about doing a loan mod for free is calling your direct lender and requesting a loan mod package. I also assist my previous clients with free loan modifications and will be happy to answer any additional questions you may have regarding the process. Good luck and I'm sorry to see you are in such a situation.
Call the City Offices where you are in California or the Real Estate Board for the county.
The Real Estate board will be easier to find from your local Yellow Pages or White Pages
or Google 411 and call them.
My blog will also give you some useful guidelines on what programs are there depending on how many liens
But be very careful, about pursuing a loan Modification if you are already 6-9 months too late on your payment.
It may then be prudent to call a Realtor and do a short sale.
It will be prudent for you to go to the Real Estate board or the City offices and meet people in person.
Just calling on the phone will be frustarting. Try doing it say around 10.00 am or 11.00 am
Call your servicer and request "the package" if any. Or ask if you can download it from the internet.
Basic documentation (ALL), last 3 bank statements, last 4 paystubs, at least 2 bills, such as electric and gas, tax returns 2008 and 2009 (only federal) with W2 forms. Have a Hardship letter that explains what happend, what are you doing to improve the situation and what do you think will happen in the future with your situation.
Fill out this form:
It will be nice to include a 4506-t signed.
Do you speak spanish?
Keep in mind, though, that there's no requirement to use a third party for that service. Others here on Trulia have advised (and probably will with this question) that it's really something you can do yourself.
One other thought: Call your local colleges or universities. Talk to someone in the business department. Find out whether any of them offer that service--probably as part of a training or educational program for students.
Hope that helps.