Creditors will likely negotiate, because it often makes sense....but you are going to have to negotiate with them, not through some scam artist.    I have wondered about these advertisements....figured  their intention was to take money for themselves, but also wondered if they actually did what they claimed.  Guess you have answered that one. 

The two things I have never figured out is why people take on unserviceable debt in the first place, and why creditors extend the credit which is obviously not going to perform.  I guess from my point of view both sides are equally at fault and I don't really see a lot of reason to feel sorry for either.  If they can't figure out a way to make it work, the borrower should lose their collateral and the lender should lose whatever they have extended beyond the collateral, and everyone should go home a little poorer and a little wiser.  The rest of us sure don't deserve to have to take care of it.