I went thru mediation to do a loan modification on my house. An offer was made. They reduced my interest from 6.25% to 5% and extended my loan over 40 years. This does not seem to be a modification at all to me. At this point I believe I should file bankruptcy of some sort but I am not sure what options. My loan is held by Wells Fargo/Freddie Mac. There are too many government websites out there for help ... too confusing to wade thru them all.
If you miss too many mortgage payments, your lender can start foreclosure proceedings to take ownership of the property, but it has to follow your state's laws.