Always consult your lender as to what your options are. They are usually short sale, deed-in-lieu of foreclosure, and foreclosure. The banks like to prevent foreclosure when at all possible. There are options that allow you to keep the home, as well.  They've even been known to lower rates & payments because of all the recent defaults. Either way, your first stop should be to get information from you lender on what options they provide. Always stay in constant communication with your lender, even if you cannot make the payments.  Write out a script and place it by your telephone.  Always give CONSISTENT information to the lender.  If you cannot pay, you cannot pay!

You have to decide if your hardship is permanent or temporary.  This is the first step.  Too often home owners make rash decisions becasue they do not think things all the way through!  Take a good, close look at your family budget.  scrutinize each and every line.  Can you make more income?  if not .  . . Then you MUST Sell.  You must sell before the legal fees, penalties and foreclosure costs accrued to the point that a short sale or foreclosure is the only option.  I have met too many home owners that held onto their house much longer than theyshould have - and in the process BACKED themselves into a corner becasue of the lost value of the house, the increased payoff and penalties and the lack of time to beat the foreclosure clock.  The minute you misss your first payment, the clock is ticking.  Now is not hte time to consider "maybe fore sale by owner ofr a while."  get it priced right, get it listed, and get the pain behind you!   

Talk with the bank.  They may be able to assist you in lowereing your payment or guiding you towards a forbearance agreement or a partial claim.  Keep talking with them.  They are not easy to work with in the first 30 days - but they will come around eventually.  Oh,  and if you have a problem with them,  call us.  remeber,  any agreement you make you will have to stick to.  if you ask them for forgiveness and then get into trouble again,  they may not be willing to bail you out.  They are not as forgiving as your parents!!!!