A loan modification is best done by a consumer with their lender or an attorney. Lenders have customer support personel that will discuss the options available to them. The viabliltiy of the borrower is an important aspect of the approval process. The lender is not likely to "modify" a loan simply to have it go to forclosure in 6 months. If the borrower cannot sustain the payments or "qualify" for the modified terms, they will not get approved.
Just recently I had a client that atempted to get their loan modified but was unsuccessful. They simply do not have the income to qualify do to a dramatic drop in their income.
One thing is for certain in these trying times, as a Real Estate Professional you must be wary of the leglistation titled "PIFA". This stands for Protection of consumers in Forclosure Act. It was passed in response to an increasing amount of fraud involving distressed property owners. One of the key limitaitons a liscensed Real Estate Salesperson or Broker has is that our liscensure does not qualify us to "represent" our clients in the renegiotaion of legal contracts. That is what mortgage is and therefore to avoid undue liability it is best left to attorneys. There are also a number of comsumer advocacy organizations that counsel consumers on thses issues. Check to see if your Broker has adopted guidelines for this.
I hope this helps!