Seems as though loan modifications could be in the bank's best interest.

I don't know about your local area but in the last few years here in Florida, realtor's, title search and mortgage companies have had an eye out for irregularities (modifications to properties without the required permit(s) and inspection approval(s) or issued permits that were never finalized).

Kitchen - Arquilla Drive, Richton Park, ILTo improve the kitchen layout, we made a slight modification by creating a bar and connecting it to the opposite wall.

Did you open the breaker panel and look for modifications?

Or it may become one in the future for example if they get denied for a loan modification.

The agreement likely says that all modifications must be in writing, and in any event, oral contracts for the sale of property are generally invalid.  

I've since made minor modifications to fit my situation. 

Is one required upon sale and transfer of property or is it if i were to make modifications to the property and needed to pull a permit?  

As we were going through the collateral file, we realized that, they've gone through about two or three different modifications over the last couple of years, with other servicers and owners.At this point, we will offer one quick contact with the borrower, and then we may just have to move on with that and try to shoot for a deed in lieu or cash for keys.

But they're not going to do loan modifications or "workouts" or that sort of thing.You may have to kick in cash when you refinance.