Excellent posts.
I strongly suggest talking with a Realtor FIRST regarding your options.
The person that advises you needs to know:
1. Your home
2. Your personal situation
3. Your local market conditions.

I'd be happy to refer you to a top REaltor that could advise you so you can decide your best course of action.

Good luck.

Kerry,
Contact your lender. They most likely have a department that deals in home retention. They will look at your individual situation and offer the available solutions. These include: refinancing, loan modification, short sale, or foreclosure. Most options short of foreclosure require you to demonstrate hardship - they'll require you to provide paystubs, bank statements, retirement acct statements, etc. If there is a way to keep you in the home they will look at it. If not they may consider letting you do a short sale, and if that is not an option then you'll probably need to try to rent the home out or let it go into foreclosure. At any rate, your credit will likely take a hit and if you can't keep the home you'll likely have to rent for a couple years. Good luck!

Tony

good afternoon kerry...are you currently on an fha loan?....if so...i may be able to do a streamlined fha refi at a lower rate.....if you are on some other type of loan...why not call me to discuss your options...there is another option depending upon what you tell me.....bob mcclure- mortgage now- farmington, michigan.....

Kerry,

The State of Michigan offers help (possibly) and some advice. Look on these two websites.

"Save the Dream" http://www.michigan.gov/mshda/0,1607,7-141-45866_47905-177801--… There are several links with information and sources of assistance.

State of Michigan Attorney General website http://www.michigan.gov/ag/0,1607,7-164-34391-180413--,00.html

I work with some agents that specialize in short sales. If they cannot help, they may be able to recommend some agents in your area. My website information is below.

Kerry, if you are not in a fixed rate mortgage you could possibly refinance allowing your payments to be a lower set amount...or possibly refinance for a longer term which would allow your monthly payment to go down. Don't be afraid to talk to people because the fear that paralyzes people is what gets you into further trouble. Speak with your lender first and then check into what other options different lenders may have for you. Possibly you could rent out your home to someone who could cover the payment while you rent a less expensive place. In the meantime speak with a Realtor in your area to see if you could put the home on the market at competitive (saleable) price and be able to payoff your mortgage. I see you are from Mid Michigan...I live and work in Gladwin & Clare Counties...if I can be of help email me through my website!