It's not surprising there are so few modifications. First, you usually will make either too much money or too little money to qualify for the program. Secondly, and perhaps more important, the average modification results in a loan that is equal to 136% of the fair market value of the house. For the homeowner, this is a toxic mortgage. It means you can't sell the house for years without getting a lender's short sale approval, and good luck with that.