IS this a short sale?
Sometimes, these banks and asset managers don't know what they are doing when it comes to "real market values" of assets and if you wait them out, you might find that the value of this property and the paper that gets transferred from one lender to another depreciates significantly when it comes time to place the asset back on the market to be sold.
(this is when you'll see superfluous fees "written off" or "Charged off" the books so that you the buyer don't get stuck with them.)
Of course your agent might have a different opinion and perspective on this as well, so please be sure to reach out to them and see.
Probably easiest to keep all posts in one so everyone has the background. But an assumption is you taking over the loan as is, so not surprised at all that you have to pay all the accrued, interest, fees, etc. this is not a purchase and you can’t compare it to one.
Short sale would never work as it’s not an arms length transaction.
As for the mod part of your assumption there usually is a three month trial period for you to show you can make the payments. That is what you are starting now. At least you are hopefully towards the end of this process.