Filling bankruptcy could allow you to take up to 5 years to catch up on your past due mortgage payments through Chapter 13. But you would have to resume making your ongoing mortgage payment.
In my area of the US, you could also apply for a loan modification either while you are in a Chapter 13 or before your foreclosure is completed. This could reduce your monthly payment for up to 3 years. I have posted a 4 part video on loan modification in my legal guide & you can get to this guide by clicking on my photo.
For more detailed information, I would recommend consulting with an attorney in your community that specializes in Bankruptcy.
In the current economic environment, the first suggestion that I make to every client is to contact your lender and determine whether you may qualify for any of their mortgage modification programs.
In the event that you have already tried this route, and you wish to retain your home, absent raising the necessary funds to reinstate your mortgage, Chapter 13 bankruptcy may be your best alternative.
Chapter 13 bankruptcy, though, does not lower your monthly mortgage obligation. In fact, it increases it in that you are required to begin to remit regular payments going forward as well as Ch 13 plan payments to catch up on your arrears.
If you cannot afford even your regular mortgage payment, and there is no equity in your home, you may have to face the fact that your may have to file for protection under Ch 7 and walk away from your home. I know it is a tough decision, but many times it proves to be the best choice in the long run.