1.)  Check your Refinance Options.

If you have equity in your home you may be able to get a fixed rate loan with more affordable payments. You need to be working with a trusted mortgage professional, not just anyone. You do not have the luxury to shop for rates and fees. Work only with a Mortgage Professional who has your best interests at heart! 

 2.)  Get Help!

Contact a legitimate credit counseling service. They can help you better evaluate your position and determine a course of action.

HUD has a toll free number to help you find an agency (800) 569-4287. 

 The VA has one as well (800) 827-1000.

3.)  Be honest with yourself!

For some people, at some times in their life, owning a home just isn't the best thing. If you're one of those people start to look for ways out ASAP.  Your choices are simple

a.) List the house with a Licensed Agent.

 b.) Offer a Deed in Lieu of Foreclosure.

c.) Negotiate a Short Sale.

d.) Allow the Foreclosure to proceed.

Obviously, if getting out is your choice, selling at current market value makes the most sense. The issue is going to be the time it takes to get a market valued offer. Time is not on your side. The Deed in Lieu, and the Short Sale are only a possibility if your lender chooses to accept it. Negotiating with a Lender is complicated and often times frustrating.

Once again, it is highly recommended that you work with a Licensed Real Estate Agent who is familiar with foreclosure law. This is not the time to try and save money on comissions like you might think.

"If you thought dealing with a professional was expensive, wait until you find out how much dealing with an amateur costs!" - Brian Brady