Mortgage Modification Proves Daunting

Summary


HELENA, Mont. - Laverl "Nick" Nicholson used to look out of his kitchen window at the weeping willows that mark the burial place of two of his daughters. Then a debilitating car wreck left him unable to pay the $220,000 he owed on his northwestern Montana home.

He tried for a year and a half to lower his mortgage payments through a loan modification, but the government-insured loan that he took out three years ago came with restrictions. The best the bank could offer him was a reduction of $124 per month, leaving Nicholson with a $1,585 payment that he still couldn't afford.

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Extract


Mortgage Modification Proves Daunting

The bank foreclosed last April, forcing him to move next door into a mobile home on two of the original property's 10 acres that he had given his daughter a few years before.

Despite the government's push to forestall foreclosures through mortgage modifications, situations like Nicholson's have become common. Loan modifications of...

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