Small nail holes are normal wear and tear (at least in my area). It is presumed that every new homeowner will probably be painting anyway.
Large holes (say, dime-sized or larger) should be spackled, and sanded. But normal holes from hanging photographs are to be expected.... more
I am not entirely clear about what is happening to you but it does not sound good. I have never heard it called a "Trial" period. But, I know of many people who have been advised by their bank to stop making payments to demonstrate "hardship" ... and then they wind up in foreclosure.
As I understand it ... the bank told you to stop making payments but they would report the delinquencies to the three Credit Agencies? But you continued to make the payments ... and they still reported it? Of course, this is not right. This causes terrible damage to your credit score. If you can prove you made the payments, you should contact the Credit Agencies and get the black marks off your credit report!
Do you owe more than you can sell the house for?
Send me an Email with all the details and maybe I can give you some advice or make some suggestions.
I will help if I can.
Prudential CA Realty