I received a hand delivered flyer today at my home from a company offering invite to a FREE LOAN MODIFICATION seminar.

Among other claims - the flyer states:

• 56% of homeowners in my city are qualified for a loan modification.
• Lenders are forced to lower house payments under new plans.
• Key factors in determining a loan modification are:
  - change in your ability to pay
  - flaws in the original documents
  - value vs what you owe

and I need to use a company like this because:

• I don't know the law the bank has to comply with.
• I don't know how to apply the right pressure
• Experienced attorneys know how to get the best deal banks ever give anyone.

At least these guys don't charge until you get your loan modification approved, which makes it seem like a no brainer.

Anyone familiar with the so-called 'new law' that forces banks to approve loan modifications? 

There are lots of clients who would be able to keep their homes if they could get a significant loan modification approved. Is this hype - or has something changed since Jan 1, 2011 that makes this a more doable option for clients not ready to move on (and do a Short Sale?)