Good point by Scott and Diane about doing loan modification on your own without paying someone. Here is an alternative viewpoint, and while I am involved in helping Connecticut distressed homeowners everyday as part of my business, I do not do loan modifications for hire.
The question for you is this: Yes you can do it yourself, but should you? I'm not going to say "don't do this yourself," but I will say evaluate your options carefully before deciding to do this yourself. And if anyone reading this has already been served foreclosure papers, absolutely engage qualified professional help asap.
While you can certainly negotiate a loan modification on your own without paying someone a fee, if you are not equipped to negotiate this or if you are not successful on your first attempt, then you should absolutely consider getting help from someone who is trained and experienced to handle this for you. Remember, the people you are going up against are trained professionals, so you will be at a disadvantage in the best of situations.
In CT we have a new law requiring anyone who negotiates a loan modification to be licensed by the state (unless they are an attorney). As of December 31, 2009 there were only 2 licenses issued statewide and neither company is located in Fairfield County where you are. Fees are also capped. If you hire someone who isn't licensed and isn't an attorney, you may be getting scammed.
Because a large part of my real estate practice is helping distressed homeowners decide what options for avoiding foreclosure are best for them, I have met first hand many homeowners who tried to modify their loans themselves without success. During our free initial consultation we help homeowners decide whether a loan (mortgage) modification, short sale, deed in lieu or other solution makes the most sense for them. I have had the pleasure of seeing several of these loan modifications successfully negotiated by two of our local attorneys after the homeowner initially failed on their own. Both of these attorneys share a similar profile, they were helping financially distressed homeowners long before the current crisis. In other words, they didn't just change careers to jump on a market opportunity the way these loan modification companies that didn't even exist two years ago have.
Very often when a client is deciding between a short sale and a loan modification, we advise them to pursue both simultaneously since loan modifications are not guaranteed to get approved or to even work for the homeowner. On a national basis less than 15% of the trial modifications granted in the last year made it to permanent modification status. More than half failed before 3 months was up because the homeowner couldn't afford what the bank offered. There are quite a few landmines in the legal documents the lender will strong arm you into signing. Someone who isn't trained to look for these landmines will be at an obvious disadvantage.
You can learn more about do it yourself loan modification, loan modification resourses, and options and solutions for homeowners facing foreclosure from this FREE site:
You can fix your cars transmission or your homes plumbing yourself without paying for labor, that doesn't mean you should.