Hi MmSuperMario,
Welcome to the forum and thank you for joining................
Sometimes a modification will increase payments if they are in default or behind on taxes or if the original loan was a low rate already and interest only payments.................what they can do to see if they can get a modification to a low fixed rate is try to go through a non profit such as NACA that will work with them on a budget and a modification proposal to present to the investor and GMAC..............they would need to meet the criteria which you can click on the link below to see the steps............
https://www.naca.com/refinance/refinanceTenStep.jsp