Loan servicers deluged by homeowners seeking new terms

TEXAS - Celina Gallegos of Arlington has taken a second, part-time job on a loading dock but still can't afford her $930 mortgage payment.

The solution her mortgage company offered? Payments of $1,100 a month aimed at helping her get caught up on back payments.

"My income is about $1,600 a month, and I cannot afford the $930 payments," she said.

Gallegos is one of a growing number of homeowners struggling to stay in their homes despite recent efforts by the federal government to encourage lenders to work with borrowers and renegotiate terms when possible. A backlog of cases spurred by the Obama administration's $75 billion Making Home Affordable program has contributed to the crush of borrowers seeking help.