I saw you got a lot of responses and good advice. Once thing I didn’t hear anyone mention is the ‘B’ word, that being Bankruptcy.
I’ve never declared bankruptcy, BUT… I know people that have, as does my fiance. One person I work with declared, and was able to get credit for a car only a year later.
My fiance knows people and heard stories of people who’ve been able to declare, and have almost NO affect on their lives. Yes, it’s a black mark and it WILL hang around for a long time. But it’s not the end of the world.
And I *think* – check with someone about this, but I *think* the Homestead Act will prevent the creditors and courts from taking your home. Anyways, it’s worth looking into, especially if you’re worried about foreclosing on your house.
take care and good luck