Mortgage Survivors

The outcome is not always so positive, Johnson said, for "there are some lenders out there who are just not willing to work with anyone."

Consumer advocates and attorneys said homeowners could do a few things to boost their chances.

First, contact your lender, even if you are not delinquent. "The earlier that they know [homeowners] are having a difficulty and a hardship, the easier it is for us to put a plan in place and allow them to get back on their feet," said Patrick Carey, executive vice president of default and retention operations for Wells Fargo.

Then, said Cipollone, contact a nonprofit housing counseling agency or an attorney. Avoid any unsolicited offers from people who say they can save your house. Do not avoid mail or phone calls from your lender. And if your lender stops accepting payments because it is moving toward foreclosure, save that money for a contribution toward the loan workout. "If you've missed eight mortgage payments and have spent all that money because the lender stopped accepting payments, that is not a good outcome [nor] a good way to start negotiations," said Cipollone.

Nakisha Ramsey, 30, and her husband made sure to hoard their money.

They bought their Burtonsville home for $310,000 in June 2005 with two loans. The first, and larger, mortgage had a 6.4 percent interest rate due to increase after three years to as high as 12 percent. The second had a 10.2 percent rate. Their monthly payment was originally $2,000, not including homeowners association fees and taxes.

The rate jumped last summer. Eventually they were paying $3,050 a month. Her salary as a social worker and his as an insurance salesman wouldn't cover it. In July, they stopped paying.

Ramsey called her lender, Houston-based Litton Loan Servicing, but had trouble getting hold of anyone with decision-making authority. The company then scheduled foreclosure proceedings for Dec. 18. She called again to propose a short sale.

"I was willing to do whatever it took so that we didn't lose the house," she said.

Ramsey found a willing buyer, but Litton rejected the $200,000 offer, she said. Instead, she said, the company offered a modification that would bring the monthly payment to $2,290, with the balance increasing to $325,000 because of missed payments and penalties.

She was going to take it, until she met Cipollone at a foreclosure prevention seminar.

Ramsey gave Cipollone documents showing what she and her husband made and owed. Cipollone contacted Litton's loss mitigation department.

Donna Marie Jendritza, a spokeswoman for Litton, said she could not comment on specific borrowers because of privacy laws. But she said the company made multiple offers to Ramsey.

"There are many instances where we'll look at financials and give an offer and the customer will say, 'You know what? This is still squeezing me too much,' and we come back with a different offer," she said.

It took several weeks, but Cipollone got both mortgages down to 7 percent, fixed for 30 years. Litton also dropped the balance to $302,000 after the Ramseys contributed $3,000 for a down payment.

"I'm terribly excited," Ramsey said. "I wanted to pack up and leave my house because I want to, not because I'm going to go through a foreclosure situation, but because it's planned."

She doesn't plan on leaving anytime soon, but if she ever does, she said, it will be on her terms.