I sincerely hope that the mortgage company will work with you. Whatever happened to that Home Affordability program where you could refinance to a lower interest rate or get a loan modification that Obama endorsed? I know I tried to get into that same program, I didn't hear anything from the bank after calling everyday of every week for two months. If they do end up foreclosing on you, you are better off filing Chapter 7 bankruptcy, that way you won't be liable for the loan when they foreclose on your home if that's what happens. You would still be able to keep your car. I'm not saying bankruptcy is the right way but shit happens and I've been through the same thing.