One of the biggest challenges to ending the foreclosure crisis is this: A surprising number of homeowners who get their monthly payments reduced fall behind again within a year.
When borrowers get into financial trouble, lenders have several ways to help. They can offer grace periods, longer repayment schedules, lower interest rates or reduced balances.
Sadly, the problem does not seem to be merely a 20% difference in loan amounts.
Unless the people and their circumstances change, too, the problem of not having enough to pay the mortgage will continue.