An iterative Hilbert-Huang transformation (HHT) based algorithm is developed to extract the modal parameters of a linear time invariant (LTI) system excited by recorded non-stationary ground motion. The acceleration responses are measured using wireless sensors, which are filtered to avoid mode mixing prior to evaluate the instantaneous amplitude and phase using HHT. The band width is adjusted in successive iterations to achieve convergence in modal parameter estimation. The numerical study presented in this work discusses the efficiency of the identification strategy in the light of noise contaminated earthquake responses.