You know how it is on ET - it's impossible to tell who's on the level and who's blowing smoke. If your story is true, I absolutely understand your feelings. It is indeed outrageous.
I do workouts for a living. (a lot of them.) So far very few people have gotten principle reductions. To get a principle reduction - you have have to willing to sacrifice your credit score and tell the second to jump in a lake while you stay current on the first. (and you have to be in a state like CA that has a security first rule). Most people are being told by realtors to stay current on the second and not pay the first. We have gotten some people meaningful payment reductions. But, most of the entire loan mod industry is not getting people shit. 2. Lately most realtors are leaving their seconds liable for the deficiency on the 2nds after a short sale. In short the bank really have not been cutting great deals. So, the only people really getting away without the help of an experienced attorney are the ones who are walking away from 2 purchase money loans in CA or 1 loan. Most people walking away from one loan have ususally lost a significant downpayment.