Despite all the press from Washington, touting this plan or that to help homeowners from defaulting on their mortgages, it’s gotten much harder for troubled borrowers to get a deal that permanently lowers their mortgage payments. The Hope Now Alliance of mortgage lenders and its servicers, Citigroup, Bank of America and J.P. Morgan, indicates that it has kept over one million borrowers out of foreclosure. But, only about one quarter of the loan agreements have actually had the terms of the mortgages modified.

The vast majority of lenders are not getting their payments reduced. The new loan contract is between the servicer and the borrower, not between the consumer and The Hope Alliance. While every situation is different, working out a new loan is proving to be a struggle for many borrowers. Increasingly, housing advocates claim that many borrowers that enter into new loans continue to be victims of predatory lending.

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