They rarely modify current loans, so if you want to lower your payment you're going to need to take a credit hit. They are not going to remove principal to any worthwhile extent, just accept that. The most they will reduce your payment if you had a fixed loan to begin with is a couple hundred dollars. The best results are neg-am loans where they sometimes let people keep the minimum payment.
It's an unfortunate but unavoidable situation right now in the US. If it makes you feel any better, everyone is in the same boat. I'm attaching my loan modification page link for reference only. I do not believe in or support the loan modification delusional fantasy business.
At the end of the day, it's just a house. Don't stress yourself out.
Yes, Banks want to help you so you can pay your mortgage.
Banks dont want you to loose your home, but not because they care about you but because they dont want to loose money.
Banks will modify your loan for two years and you can get a great interest rate, but its only for 2 years or 3 years. What will happen with your property and your financials in couple of years? You dont know. So the same problem is coming back again and again.
If you cant afford your mortgage payment, get out of there now.
If you can afford the payments, but you want a little better payments to save more money than loan modification can be good for you.
Always think for the long run, dont think about tomorrow only because loan modification in 90% of their cases are temporary.
Let me know if you would like to explore that option first if not then I could recommend a source for the modification that will charge in phases as work gets done.
Your situation is not uncommon. Home values have declined so most people that are selling, if they purchased from 2003 onward, or have home equity lines of credit, or refinanced, probably have a negative net worth.
If you need help please contact me via my profile so we can analyze your situation see what options are available.
Good luck. Beware of cash up front firms offering loan mods. They have a very low success rate.