Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

4 of 8
BACKNEXT
Burt Carlson, Phoenix, Ariz. - Success
A mortgage consultant whose business has been decimated in recent years, Carlson applied multiple times this past fall for the Hope for Homeowners program, which was set up last year to assist troubled borrowers lower their principal and monthly payments. He was turned down each time.

In February, he sent letters to his primary mortgage company, Aurora Loan Services, and the holder of his second mortgage, Washington Mutual, saying he would stop paying. Within a few weeks, WaMu sent him a package offering to lower the mortgage rate to 5% from 11 1/8%. (WaMu was taken over by JPMorgan Chase last year.)

Aurora was a tougher nut to crack, but it eventually agreed to lower his monthly payment to $1,400 from $2,000. He is currently in a three-month trial period, and if he makes all his payments, his modification will become permanent in the fall.

"Everything that they've done has been as advertised," said Carlson, who wants to stay in his home though it's lost nearly half its value since he bought it three years ago. "I'm much more confident about not losing the house."

NEXT: Still making payments? You are low priority

Last updated July 06 2009: 3:05 PM ET
Email | Print | Share  |  RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
More Galleries
Utilikilts makes kilts with pockets and belt loops in Seattle shop Founder Steven Villegas has been running the business for 16 years hoping utility kilts will one day be mainstream menswear. More
World's Top Employers for New Grads For an exclusive CNNMoney list, research firm Universum Global surveyed business students at colleges around the world to see where they most want to work. More
Brexit voices: In or out? CNNMoney speaks to British people to find out their views ahead of the referendum on EU membership. More

Special Offer