Shay, first off, you are NOT ALONE! Don't feel guilt over this predicament. You did not state your lender's name and that can be very important or if you have a first AND a second note on the subject property. Rachel is correct--do not delay--call your lender NOW! Better yet, call your Realtor who sold you the property and then call the mortgage broker/lender who originated the loan for you; misery loves company!
Now here's some of the buzz on the street. This is "buzz" which Realtors/Licensees share with each other. Lenders are taking sometimes 3-4 months before they file a notice of default (NOD) on delinquent payments for loans. This means Shay, you quit paying this month and they are taking 3-4 months before they send you a notice of default (NOD) which means you've got 90 days in which to bring your payments current. In the greatest state of California where we have non-judicial foreclosures and trust deeds, the process usually takes 122 days from NOD to Sale of the property on the court steps. One Realtor told me he had a client who was paying $3500/month for their Loan. They couldnâ€™t do it any longer. They had a family to feed, car payments to make, life purchases for survival and family care. They quit making the $3,500/month payments and it took the lender 4 months to file the NOD. The home went to sale, sale was made, and Lender took the property back as they could not sell it off to an investor. The lender then sent a guy around 30 days after and offered them "keys for cash" if they would PLEASE vacate the premises! His client saved $3,500/month for 8 months and then the lender gave them $1500.00 for their keys! You do the math!
NOW!! Big Caveat here!! You need to talk to a CPA, the Lender and see what YOU can do to keep your home. That is understood and highly recommended!
BUT--don't drive your family to the brink of financial ruin because you can't make your house payment! The CEO of Merrill Lynch, who's company had to write off 40 BILLION $$$$ due to his incompetence and recommendations to purchase CDO (credit debt obligations) got $161 Million to LEAVE HIS COMPANY!! No, he didn't loose his HOME!