Whatever you do, don't abandon your home. You could lose eligibility for FHA and VA mortgage assistance programs. If you have a VA loan, you can contact the nearest office of the U.S. Department of Veterans Affairs for assistance. You May Have Options. Understand that lenders don't want you to lose your home.
Foreclosures are expensive and time-consuming for lenders.
Many lenders will view foreclosure as a last resort if you sincerely attempt to work out another solution. If the market value of your home is lower than what you owe on your mortgage loan, you may be able to list your home for sale, then negotiate with your lender to discount your loan so the sale of your home will discharge your debt. You'll have to show proof of your financial crisis and a realistic spending plan to get current on mortgage payments. If your income drops substantially, don't wait until you go into default before asking your lender for help, such as modifying your loan to lower your interest rate, extending the duration of your loan, or adding delinquent amounts onto the principal. You'll pay more money over time but lower your monthly payments to an amount you can handle.