n_s_r, I basically agree with you. I think the loan modifications – which I consider to include both the formal and informal arrangements – will largely be relatively short-term in nature and will also generally be accompanied by extenuating cirumstances – job loss, medical issues, etc. (as with Ms. Rodriguez).
The average schmoe who could only afford their mortgage at the teaser rate and has very little hope of getting current at the re-cast rate (with no extenuating circumstances) won’t get much relief. That’s my take on the situation, anyway, having discussed this at length with someone who’s in the middle of this.
The problem, of course, is that there are a lot more “average schmoes” out there than there are people with extenuating circumstances.
