You have the right to contact the loan servicer and request a modification of your current loan. This will result in your being requested to complete a loss mitigation packet. This will include a financial statement, a hardship letter explaining to the bank and loan servicer why you are unable to maintain your current payments, and copies of employment records, pay stubs, and copies of current bills
sale of house
You have the option to list your home for sale with a licensed realtor or for sale by owner. first you must determine whether you have any equity in your home. That is, is the fair market value of your home greater or less than the current balance due on your mortgage. If there is positive equity then if you sell the house, you could potentially walk away breaking even and owing nothing or keeping some proceeds from the sale. If you have no equity, then you may need to find a buyer and then negotiate a short sale wherein the bank would accept the sales price and either waive the difference owed on the note or seek to enforce a judgment and payment plan for the difference.
Deed in Lieu of Foreclosure
A deed in lieu of foreclosure occurs when your home is under water, there is no equity in your home and you owe more on the loan than your house is worth. You negotiate with the bank to pay you some moving expenses and you agree to move out of the home and sign over the deed to your home and save everyone the cost of foreclosure litigation.
Additional resources provided by the author
In the state of maryland you can contact a neighborhood housing counselor organization or contact the local civil justice office. I also encourage you to go to www.mdhope.org and research more about loss mitigation, HAMP and other foreclosure issues