Hi, Nance. I'm sorry you're in this situation. Without knowing how much your downpayment was, I don't really know your current financial position in the house. If you are in a situation where your current loan is higher than what you could sell the house for (minus the sales commissions and closing costs), then you would be faced with losing your downpayment and trying to do a short sale. With a short sale, your lender agrees to take less than what the loan amount is for.
The main thing right now is to determine if you want to stay in your home to preserve the home (if you can afford to stay in the home) or be able to stay at home with your baby (which is commendable!), and risk not being able to keep your home. There really isn't an easy answer, or a right answer, just the best choice for you given your alternatives. I'd be happy to discuss this more in detail with you as there are MANY pros and cons (tax consequences, etc.) with everything you are thinking about. Please feel free to visit our website for our contact information.