First, the advice below about contacting your mortgage lender to re-nogiate your mortgage is very wise. The sooner you call them, the more likely you may be able to work out a compromise.
If you do nothing, the following will happen:
1.) Maine is a lien-theory state. This means that the mortgage lender will file a Lis Pendens (Notice of Intent to Sue) with the York County Cour seeking an order to seize your home.
2.) Assuming you offer no defense to the Lis Pendens, the Court will order a Foreclosure Judgment. The lender may then seek an Order to force the sale of your home at auction.
3.) If no one buys your home at auction for more than the aount owed to the lender, the ledner will probably buy the home. Maine is a "Deficeincy" state, which means that after they eventually sell your home, they may sue your for their losses - the amount lost on the fire sale price plus legal expenses.
If the lender obtains a Defiency judgment, it may choose to order a sezure of other assets to satisfy the judgment.
You have a couple of options:
1.) If you can prove malfeasance on the part of the lender, you might have a defense against the foreclosure judgment in court.
2.) You could file for Bankruptcy under Chapter 13 in Federal court. Upon filing, the Court will order an Automatic Stay of foreclosure, which means the foreclosure lawsuit is put on hold until the bankruptcy court has time to hear for both sides. Under Chapter 13, you offer your secured creditors a repayment plan over the next 36 to 60 months. You must prove your ability to make the payments.
Again the above should be considered a last resort AFTER you have exhausted all other attempts to work out a loan modification or forebearance agreement.
In an event, the smartest thing to do is to hire a lawyer.
You have excellent answers here.
A couple of thoughts:
You have three options that I see from your post:
1. If you want to stay in the home, try to get the lender to re-negotiate the loan.
2. If you want to get out of the home, then try to negotiate a short sale.
these two options require the opposite approach. In both cases you need to explain to the lender how at one time you qualified for the mortgage and could make the payments, and how it is that now you are in trouble. You will also be asked to provide a financial statement of assets and liabilities.
To obtain the loan mod you'll need to prove that if they give you are lower mortgage payment that you can pay it.
To negotiate a short sale you want to prove that you are broke.
The lender would rather have you try options one or two FIRST.
From the lender's perspective they would rather NOT have to foreclose.
If you would like I would be happy to try to refer you to a Realtor that could provide you with advice on your options. Contact me via my Trulia profile.
In particular, see Pine Tree Legal Assistance (207) 774-8211 and Volunteer Lawyers Project 1-800-442-4293 on that page. You might also call the York Housing Authority. (207) 363-8444 They may be able to recommend additional help.
Pine Tree Legal Assistance is offering a free foreclosure prevention workshop and I would start with a phone call to them. Good luck, Mara.
For the other question about what else they could take from you, you should contact an attorney. There are usually free of charge legal help services available for people in your situation. Call your state Attorney General office for the correct contact information in your area.