Write-downs give some homeowners a break
Pushed by government incentives and political pressure, mortgage lenders are forgiving millions in loans
Donald and Stacey Dobbins fought for seven years to save their home from foreclosure, unable to keep up with ballooning debt on a property they bought in 2005 for $297,000 without any money down. In December, the Dobbinses’ lender offered to erase $190,000 from their debilitating debt and cut the interest rate to 4.4 percent. That reduced the monthly mortgage payment to $1,400. They join tens of thousands of homeowners across the country who are receiving hefty home loan write-downs.