This is probably the second most asked question I get. It falls right behind “what is a short sale?” If you want to do a loan modification, please feel free to investigate that option. I will be right here in the event that a loan mod does not work out in your favor. The sad fact of the matter is that banks are flat-out unwilling to reduce principle, and you may only get a $12/mo reduction on your mortgage. Unfortunately, there are just too many stories of loan modification companies collecting your money up front, and then you end up nowhere. Don’t believe me? Google “phoenix loan modification” and see how many on the first page of Google is still in business. Try it, and if you get more than 5 that have working phone numbers, then it’s a good day!