More underwater homeowners to get cuts in principal balance

Lenders have resisted forgiving debt as part of mortgage modification programs, but the outlook for that step is changing.

For hundreds of thousands of homeowners who are underwater on their mortgages, it’s been a tantalizing question: Is there any way that our lender might agree to lower the amount we owe – not just the monthly payments, but the principal debt itself?

Read the full article from the Los Angeles Times, please click here.