What should I do if I'm behind on my mortgage? 4 Answers as of January 30, 2012

You say you originally "asked the bank" and they agreed to your terms. But was the exchange in writing, by letter, fax or e-mail? I don't really understand their stance on this. So long as you make up the missed payment plus any late fees, you should be okay. In the future, only handle such matters by some form of written communication. That way you can prove no only what you said but also what they said.

Generally, your original Mortgage documents states the order in which your payments will be applied. For most borrowers, the Mortgage document states that payments will be applied to Interest first. However, your issue seems to be how to get out of the default situation, rather than application of your payments. You should consult with an experienced attorney who can review your current financial situation and circumstances, and to formulate a plan to help you resolve the default, which may turn into a foreclosure if not resolved.

You should ask the lender if they participate in the Home Affordable Modification Program (HAMP), and apply for a HAMP modification. Alternatively, if you can begin making regular payments again, you can ask the lender for a repayment plan for the back amounts. These are usually added to the current payment over 6 - 12 months.

You have to call the loss mitigation department and ask for a forbearance agreement (repayment plan). This will take a number of months to get approved and you will have to apply and provide a lot of documentation.