Most Lenders don't want to foreclose on your property and will be willing to work with you.

Very few items on your credit report hurt your score and ability to get approved at a good rate as lates on your Mortgage.

If you cannot make your house payments you should figure out why you can not make them. After you have figured out why you are unable to make your house payments, putting your home up for sale may be your best option. By putting your home up for sale this may salvage your credit rating and keep your credit history in tact. Also, you will be able to move into a much cheaper place that is affordable and will help you regain control of your finances. Consult a mortgage professional to see if there are any other options available.

The last thing you want to do is declare bankruptcy. The new laws that have gone into effect make this option even less appealing--and less effective in getting you out of your financial straits. The decision to sell your home might be quite stressful, but much less so than the alternatives.

And there is always the chance that the appreciation on your home might give you enough cash to start over again with a clean slate.

If you can not make your payments anymore and you have an FHA loan, then you might be able to get “Special Forbearance”. This means that your lender will arrange for a revised repayment plan which can include a temporary reduction or suspension of payments. To qualify under this program, you must have an increase in living expenses or an involuntary reduction in your income.