Very Unique Story... Need Advice Badly

[Joel Fraser]

Hello, I am a new member and I live in Texas. I have a very unique story and need help very badly. Here it goes. In May of 2004, we purchased our home for $137,000. In August of 2007, we made a principal reduction of $50,000 towards our note. The current value of the house is $160,000. Our monthly payment was $1307 including escrow and insurance. This is an FHA loan. I recently in May lost my banking job earning $80,000 a year. Due to family legal issues, we depleted most of our savings including 401k. We could not qualify for refinance under company guidelines because we were delinquent within a 12 month period. Our credit was shot due to legal issues so we could not get refinance from a third party lender. My wife was a stay at home mother and had to secure employment. She currently is employed making $30,000 a year. I was unemployed until recently. The job market is rather tough even with my experience and I wanted to secure any type of employement. I am working making $20,000 a year. So combined we are making $50,000 annually. I want to do a loan modification so they can lower our monthly payment. The name of the company is Universal Mortgage Company located in Wisconsin. My current payment of $1307 is based on the original $137,000 note amortized over 30 years not the current principal balance of $87,000. Here are my questions: 1. Do you think the bank will modify my note and readjust the amortization so my payment can be lowered.2. I have over 60K worth in equity, what are my options?3. Do you think I should tell the bank I am working also? We have no other installment or revolving debt apart from student loans. I did the debt/income ratio analysis based on her income and she has sufficient excess personal cashflow to service the debt on her own. I do not want to show my income if all they would do is give me a forebearance.Please let me know your thoughts.