We have a refi first and second with B of A that they obtained thru Countrywide. The 1st is a 15 yr loan balance of151k that we are half way through with an ugly second of 179k that we obtained in 2007. Total payments per month are $3735 (we can rent a nice place of 1100). I called Bof A in 2009 after my husbands second knee surgery made him unable to work. I asked if they would do a 30 yr loan to make our payments more affordable and was basically chuckled at and told no. My husband retired after the surgery(he is 56) and we took a 3500 dollar cut in pay per month. Fast forward...we have been making our payments robbing Peter to pay Paul with the hubby finding an office job to help us get by. We owe 11k in back taxes (part of the robbing to pay process) that we are paying back and will be in the same boat again this year. The house is now worth about 160k IF we could find a buyer. We live on a dirt road in a small desert community and things here are ugly. I spent $200 to talk to a real estate attorney and he says we are basically in no mans land because of our income and that B of A will come after us for the balance after they foreclose. We have just missed our first payment in this process. What do I say when they call? We wont be paying so come get it?? I am not worried about our credit as I am assured that I don't need a 750 FICO score to get into heaven but I need some information on the process. Is this something that they take us to court and we work out a payment arrangement? Do they get all of it or just an amount agreed upon? Do the banks sell the debt and let Guido chase us down? I know I owe the money but it is a better financially for us to walk now then continue to throw more money into a black hole. I will be retiring in 3 years @55 and will still be unable to afford or sell this place.