I know this is an old question and Sonny may have already had to do something else, but AVOID FORECLOSURE if at all possible!!! Get an Agent that knows SHORT SALES! You don't have to worry about paying the Agents Commission, Stay in your House if at all possible. Agents that know how to do the Short Sales, are trained to ask the right questions, and get the right information from you to send to you lender! Your Lender doesn't realllllly want your house! They are NOT in the house selling market, they are in the money lending market. It cost them to take your house back, so in this day and age, Lenders are working more and more with the home owners. If you are having a financial problem, or have had a layoff, death, or just your mortgage has risen out of reach, call me. Maybe I can help, and if I can't I'll tell you so.
Email me at: :Martie@Remax.net or call 512-618-1342. Foreclosrue is awful on your Credit and hurts in Job Hunting, and Insurance and many things. A Short Sale does NOT affect your Credit!!!!!!!!!

Dear Sonny,
I agree with Bruce. Don't just let it go, because that is nearly impossible to recover from. Your credit will suffer long term damage and you will pay for it in the long run with higher insurance premiums etc. Talk to a Realtor about selling and be honest and up front with the bank. Try to avoid foreclosure. YOu have options. Good luck!
Sincerely,
Betina

Do your best to stay in control. If you want to stay in the house call them, try to work something out. Stretch the payments get a second or something. That is if you want to stay in the home and can afford to pay the monthly payment. If you don't want to stay in it, tell them that. Work a short sale if you need to. Get serious about selling it. Get it listed quickly. Do your best to get the highest price possible, ie keep it show ready, clean it up, keep the yard mowed, etc. Let's say either way they want to come after you for the difference in what it sells for and what is owed. That difference might be much smaller if you are working a short sale versus just allowing the bank to take whatever they can get for it and spend a lot of money on the foreclosure process which they will add to your bill.
Now it is debatable if they will come after you for the difference.....however they will likely keep that foreclosure on your credit for years if it comes to that. What happens if you want to buy a house down the road. In my opinion you're going to have a difficult time. Who wants to lend to someone who just gives it back. If you work a short sale, perhaps there is some chance for you to pay back the difference lost over the next 1-2-5 years. If you can show someone that you were in bad circumstances, but worked to resolve and pay back ever penny owed, that might well go far with a lender in the future.
I know it is no fun....but go the extra mile to resolve the issue....it could very well be beneficial to you in the future.

You have other opions than just letting it go. you can contact your lender and ask about forebearance or loan modification that would allow youto stay in the home. if you are ready to leave than askl about deed in lieu of foreclosure which will be slightly better on your credit report than letting or go, or ask if you can do a short sale and find a broker to recoup some of your losses. you have options, dont give up.

Kyle: Unfortunately you will probably lose the house in foreclosure. I am in California and most if not all homes are sold via deeds of trusts in a trustee sale for there is no way to get it back once that is done. A foreclosure on your credit report stays for a long time. You should contact your lender about anything they will do to modify the loan. The other alternative is a short sale of the property. Good luck.