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
Best places to retire abroad in 2017 The top 10 places to retire overseas include beautiful beaches, cozy towns, and the best food you will ever eat -- all for half the cost of what you may pay in the U.S. More
Best business class airline lounges around the world Between August 2015 and May 2016, Skytrax surveyed over 19.2 million customers to find the best airline lounges. Here is what they found. More
What Boeing's new 737 Max 9 has under the hood Boeing unveiled its new, longer 737 Max 9 airliner earlier this month, the second member of the updated single-aisle jet family. The first aircraft will deliver to airlines starting in 2018. More

Special Offer