Wow, that's a tough one. I feel for you and hope the best for your family. Which option will prevent you from being homeless - selling the house or filing bankruptcy? And are you even eligible to file for bankruptcy? There are regulations to it.
As for selling your home, it's not going to be something as quick as overnight. It may take a good while before someone will purchase it. But you should definitely look into selling it before it gets reposessed. Perhaps you can put it on the market and buy a less expensive/smaller home for your family?
Good luck to you all for whatever happens.

I am sorry to hear that you are having such a hard time with it. Can you live with out your car? Can you down size at all? What about other resources that are available to you? Churches or the food banks in order to help you get the things you need for you and your family. Try selling your house - down size to something smaller if possible. I was the only one in our house working when we first started out. My husband went almost a year with out working. We struggled but made it through.
Is there any kind of financial adviser that can help you out? Consolidation of your loans or anything?
I am thinking of you, and wish you much luck.

I would suggest talking to a lawyer just to see what your options are re bankruptcy. I know they have made the laws tougher. How about social services -- food stamps, welfare, going to food banks, etc. I would see how much help I could get from social service agencies. But that depends on how much income your husband makes. A lot of churches offer food banks and that can save you a bundle.

This is a tough situation.

Have you tried applying for temp work? I did temp work at different times when I couldn't find a full time job.

Wishing you the best, DD

Belle this is so hard for you right now :(

Can you down size on both car and house? If so maybe it might be worth speaking to the bank and telling them your problem? I know that in england rather than you loosing your home the bank would try and help you the very best they could! If you dont let them know your struggling they wont know you need help....trust me they do help !
The credit you got your car off are the same, if you tell them you are having problems paying the full amount just now sometimes they will make easier affordable payments for you or sometimes give you some breathing space dependant on how long youve been in the agreement for.
i was in the same situation with my new car just like 6 months ago i feel behind by 2 car payments and didnt know how id make all the money up i owed.......so i rang them and explained the situation they was very helpful and allowed me to pay a little off my debt on each monthly payment it was such a big help for me.
it seems drastic to have to sell your house or file for bankrupcy just yet belle so dont worry about that yet!
Do you not have an advice bueru you could goto for advice ? ( if it gets that bad)
Id seriosuly talk to your mortgage lenders/bank first and explain to them you fell behind and see what they can do for you Im thinking about you belle and im sure it,ll all work out , everything happens for a reason and im sure you,ll be fine xxxxxx

This is very sad to hear. I would suggest that you speak with a lawyer. There are long term conciquences to both of the options you mentioned. I hope thing get better for you.