Loan Modification? Another scam? How does this affect FICO?

Has anyone heard of a homeowner who has been successful at actually getting a loan modification? It seems that the hoops are unrealistic for these homeowners to actually satisfy the mortgage company requirements. Some of these people should put there home on the market and try for a short sale. By prolonging the inevitable is this pouring salt in the wound? Do we know how this will affect their credit??

I am also seeing internet companies trying to make money on these homeowner's suffering? How can we stop these predators? This is a blemish on our industry.

I think now is the time to be realistic, if you are so upside down that you will never see your home value coming back in the life you will be in your home, SELL!!!SELL!!SELL!!!