While there are great loan modification resources that are available at the state level, looking locally is a good idea as well.
During economic downturns, many communities step up their awareness of what people in their communities are facing as far as financial hardship.
Borrowers should contact local public agencies to what they can offer. Counties and some municipalities may have human services, community development or housing departments that may be of assistance or able to direct residents to other resources, including legal services.
Other organizations within their community, such as the library or the local chamber of commerce should be checked as well, to see what resources are available through them.
The U.S. Department of Housing and Urban Development (HUD) sponsors and approves numerous nonprofit housing counseling agencies that it works with across the country. At least one of these should have an office within a short drive of most people. Borrowers often prefer to sit face to face with a counselor, versus conversing on the phone and talk about what they are going through.
To search for a local HUD-approved agency, visit: http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm