Texas Supreme Court May 16, 2014, No. 13-0638 (Sims v. Carrington Mortgage Services, L.L.C.)

Chief Justice HECHT

delivered the opinion of the Court.

To avoid foreclosure, homeowners and lenders often try to restructure underwater home mortgage loans that are in default by capitalizing past-due amounts as principal, lowering the interest rate, and reducing monthly payments, thereby easing the burden on the homeowners.