Mortgage workout process not working out?

Several days ago, I highlighted a Moody's study about loan modifications -- the process by which a lender attempts to work out a troubled loan by modifying certain loan terms. The conclusion reached by Moody's: The workout process isn't exactly firing on all cylinders. The firm found that only 1% of adjustable rate loans that had hit a rate/payment reset date through July of this year had been modified.

Now, the New York Times has weighed in with a detailed piece about how many borrowers are having trouble getting their lenders to budge. The story zeros in on Countrywide Financial, which services $1.5 trillion in home loans. It's not perfect, but it does help illuminate some of the ins and outs of the workout process.