As you are finding out, loan mod's don't work because you are asking the bank for help and they aren't going to give you any (real help).
You mentioned violations in the original documents. If you haven't already, you might want to consider a forensic audit of your loan process. Lenders have many requirements that they are supposed to follow when making a loan and in the last few years have not fulfilled their requirements.
Nearly all loans that were - ARM's, Stated Income, Investor, No Doc, had a prepayment penalty, were made to someone speaking a foreign language - were made out of compliance. The audit will show what the lender has done in violation of the lending requirements.
You use their violations of RESPA, TILA and Predatory Lending laws to give yourself a position of strength in dealing with them, instead of being under their thumb begging for help.
People can use this information to force a lender to negotiate a reduction of the principal amount, interest rate, the payment, or to complete a short sale.