Loan Modification Companies - How do they work? Has anyone used them?

How do most of you market and what's your typical customer like? We send letters and get referrals. I will only take a customer who is upside down by at least 50K, typically they're at least 100K to 150K. I prefer that they have 2 mortgages, hopefully ARMs with high margins, or a second at least 9%. Payments up at least around $3000 a month, and preferably a month late already. I want them to know and admit that if they don't do something, they will lose the home. That have to have accepted that and are fired up and ready to get started. The people who will be in trouble in six months or so are usually not there yet. They're still in denial or some other stage of grief about their situation. Once they accept reality and are ready to do something about it, that's when I want to meet with them. And if they have a high interest AMR and a big second, they will probably love their mod. People who have a super low adjustable home equity at 3.5% variable and a 6.25% fixed 1st will often not be impressed when you tell them you'll probably be able to get them in a 4% fixed that will make their payments roughly the same, even though that variable is a ticking time bomb that will probably destroy them within 2 years as it inevitably goes up.

So most of you guys accept payment after you've modded the loan? What about overhead? Processing? The damn lawyers that just sign the package and bill us for a 1/2 hour? Marketing costs?

I dont know how some of these loan mod co's.sleep at night...5995.00 for a loan mod..DAM!!..no wonder my phone is ringing off the hook..most of the people I help could get there loan cought up with that kinda money..come on people..it is companys like that that will have the goverment steping in soon and shuting us all down or putting stipulations on this industry that make it nearly imposible to operate or make a profit.!!!I am all for making a living..but that is just robbery.these people are already in a certain hard ship why salt a wound to make a huge profit.

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Jgordon, what operating costs are you seeing? Marketing, processing, etc.? And can I see some loan modifications you've modded? What's it worth to save $300K? Success rate? Costs?