If you want to permantly keep your home, then your options include:
* pay to get current on your mortgage, then continue with monthly payments
* Keep trying to find a reputable company to help modify your mortgage to a lower monthly payment that you can afford - even though you've already been rejected you can still keep trying!
* If it applies to you, then I like the suggestion below to rent out any extra rooms that you may have. Anything to increase your income.
To permanently keep ownership of your home, those are the only options that I know of.
If you cannot afford to do either option, then you could still buy yourself considerably more time buy taking control of the situation and doing a short sale. This is so much better than sitting around waiting for the bank to evict you. The new HAFA program will pay you up to $3,000 to short sale your home if you qualify, and it sounds like you do.
It's a long shot - but it is possible to find someone who will purchase your property through a short sale and then rent it back to you. While you would not retain ownership, you could still live there and rent.
Please email or call if you have more questions.
DRE Lic #01871454