Until recently, the only way for cash-strapped homeowners like Kevin and Jennifer Norris to renegotiate the terms of their mortgage was to default on the payments, because no bank would consider their request unless they were in arrears.
“But I’ve never missed a payment on anything, and we have a near-perfect credit score,” Mr. Norris said. “I don’t want to ruin that.”
Mr. Norris, 33, recently lost his job with American Express, and the couple now rely on Mrs. Norris’s earnings as a market researcher. They have considered selling their one-bedroom one-bath condominium in Rye, which they bought for $412,000 two years ago at the height of the market, with no money down.