The truth be told, paying someone to modify your loan is silly.  It’s not complicated and you can do it yourself.  The simplest route to changing the terms of your mortgage is to see if your mortgage has an option that will allow you to recast your mortgage.  A mortgage recast will allow you to make payments based on the balance that you have paid your mortgage down to.  This will only give you a lower payment if you have a fixed rate mortgage.  If you have paid your mortgage down and now are in need of a lower payment, a mortgage recast option could be your answer.  A lender will allow you to do this once in most cases for a fee.  The fee to recast your mortgage is usually anywhere from $250 - $500.  This is definitely cheaper than doing a whole new refi.

Are Loan Modification Companies Legit?

The vultures come out when there is blood.  If you are behind on your mortgage a loan modification may look like a simple solution.  But wait most of these companies are going to charge you a fee for their service.  Is it worth it?  I don’t know, you can probably do it yourself.  Your first step is to call the loss mitigation department of your bank and talk to someone about your situation.  The most likely outcome will be a forbearance agreement.  This will give you a lower payment for a few months and tack on the difference at the end of the loan.  If you are real lucky you can get a lower interest rate and principal reduction.  In either case you can ask the bank for this yourself with out a fancy pants Loan Modification company.