As the other writers have said, contact your bank first. Ask for the loan mitigation department and be prepared to submit a list of your monthly expenses along with copies of your most recent paystubs.
It has been my experience that the banks usually don't respond immediately.
I also refer clients to ACORN and Consumer Credit Counseling. These non-profits do not charge a fee to contact your bank and work out new terms.
Sorry to hear about your situation. Call your lender and tell them about your difficulties. They may be willing to work with you. Honestly, the bank does not want to take possession of your home if they can avoid it. If the lender is not willing to do a loan modification they may recommend a short sale. Based on your statement I would say that you would most likely be approved for a short sale. Contacting your lender is vitally important, please do it right away.
Prudential Tropical Realty
Your lender is propbably is offering the Obama Administrations Hope for Homeowners Programs. The unfortunate part is you need to have a job or some form of steady income to be approved for this modifiacation. They will not lower your principle balance but they will reduce your mortgage payment to reflect 31% of your income. If you are collecting unemployment they will also allow you to use this income in your ratios.
If you do not qualify for this modification you need to explore the alternatives of either a short sale or Deed in Lieu of Foreclosure. Your lender can help you structure these alternatives at no cost and im sure one of the great realtors with Trulia can help you get your house listed.
Best of Luck to you and your family!
The program is effective from October 1, 2008 to September 30, 2011.
Borrower eligibility: Lenders that determine the H4H program is a feasible and effective option for mitigating losses will assess the homeownerâ€™s eligibility for the program:
The existing mortgage was originated on or before January 1, 2008;
Existing mortgage payment(s) as of March 1, 2008 exceeds 31 percent of the borrowers gross monthly income for fixed-rate mortgages; For ARMs, the existing mortgage payment(s) exceeds 31 percent of the borrowers gross monthly income as of March 1, 2008 OR the date of the new loan application.
The homeowner did not intentionally default, does not have an ownership interest in other residential real estate and has not been convicted of fraud in the last 10 years under Federal and state law; and
The homeowner did not provide materially false information (e.g., lied about income) to obtain the mortgage that is being refinanced into the H4H mortgage.
You may also want to check to see if The SHIP program in your county can help you.
Please feel free to email me I would be glad to try and help I am a licensed Mortgage Broker in Florida
For information or help, call me or e-mail me