Yes Pam is correct, the worst that can happen to you is you can lose your home. At the present time, the worst thing you can do is to do nothing. You need to try and negotiate with the bank and see if they can assist you. Get together a hardship letter that explains why you cannot afford your payment. Based on my experience Banks are taking longer to foreclose on homes because they have too many foreclosures going on, this may or may not be the case for you. I implore you to begin trying to get a modification or forebearance on your loan and see if you can figure out a way to keep it. Don't take no for answer, you probably worked hard to get your home, so working hard to keep it is just part of the deal.