This is a difficult situation. If however, your take home pay is less than your monthly mortgage payment, you really cannot afford the property. It sounds like you may have had an option 2 year ARM or something similar and are now facing a high reset payment. The market is weak and after paying a 6% commission for realtor services, you will need to bring $$ to the table to sell which you likely do not have. Therefore, you either a) foreclose or b) attempt to have the bank modify the terms of your loan. Start with (b) and if the bank says you must miss a payment then do so. The realty is that you cannot really afford the property and there is little point in burning through whatever savings you have to keep your head above water. Don't feel like your situation is unique--it is the same circumstances for millions of home owners across the country currently.