Yours is a tough question to answer because it could be two questions.
If you are asking if homeowners who weren't really qualified, financially, to get the loans they were given... if those folks are getting loan modifications... the answer is yes, but on a case by case basis. The application must be complete, factually supported, and be sufficiently compelling. Not all deserving loan modification candidates are "rewarded" with an affordable loan modification. Sometimes, the borrower must be proactive and "force" the lender to negotiate fairly.
Relief offered by "bailout funds" is slow in coming to distressed Borrowers, but lightening quick for banks and investors and those whose greed caused this nightmare in the first place.
If you are asking if borrowers who seek loan modifications are getting loan modifications but with terms which are still unaffordable, the answer is yes.
And ultimately, those loan mods fail because the relief offered was simply not the long term relief needed to sustain homeownership.
