You can not justify bad behavior by pointing to other bad behavior. BOTH are wrong.
You say you will take the credit hit and bring it on....Actually if you filed a Qualified Written Request to the lender... File it with the customer service department, then the lender cannot report you late on your mortgage. This would allow your other credit to remain in good standing. In the end you would have no late payments...just a foreclosure on your credit profile.
I certainly wish you good luck..I think you will be there for 18 months rent free as the banks are so backed up.
The Credit Repair Expert
I'm just a bit surprised at your age. Not to be age-ist, but I usually see that attitude from some Gen-Xers. (To all you Gen-Xers who are responsible--and that's most of you--that comment isn't directed at you.) If you've paid mortgages for 35 years, you're solidly a Baby Boomer. And usually their attitudes are a bit different.