We have been involved in cases where the borrower was hunting down potential note buyers for their own note so the borrower could get a modification that they felt entitled to but the mortgagee did not.

I assume the loan re-modification will probably bring down the value of the house to where the comps were-- $40-50K and at the same time bring his payments much lower.

I've seen a lot of discussion on whether or not to allow tenants to make modifications to the property because of equitable interest issues.

As you can see on page 11 under "Loan Resolution" the company focuses on loan modifications to protect their servicing revenue and avoid expenses involved with default/REO.

Structural modifications?

Doesn't seem a modification would be likley being unemployed.

I am thinking of doing a loan modification to bring down the payment or interest rate and then a lease option.

The key people at these institutions all know each other so guard your reputation very carefully but don't be a push over, these institutions have budgets and access to government funds to make property modification, improvements, repairs, etc.

It will show you what kinds of issues are addressed in your area.You can then make your modifications and make notes as to what you want to do.

It is worth asking about a modification, if you and your ex qualify.