Most likely, a loan modification won't cost an owner anything, because it's something he or she can do without help. If you know you're going to have trouble, call your lender, the sooner the better. Chances are, you'll get an offer for modification.

Email me if you'd like references for financial counseling. ACORN and Open Door both have HUD-certified counselors, and they're free.

I've heard there are companies out there that charge outrageous fees. Don't pay.  I think I could do  most loan modifications in a couple of hours, which, at my current rate, is $190 max.  Might be less, might be more, depending on the time it takes. If it were a situation where a lender would agree to a significant principal writedown (which would probably take a bit more time), you'd have to plan on legal, and possibly accountant, fees as well.  Still, that's pretty reasonable.

Free is the best choice. Paying a lot of money upfront is the worst.