I am wondering if a bank is able to raise your mortgage over your expected rate of pay are you aloud to forclose with out any damage to credit?

A bank is only able to require you to pay what you agreed to in the note you signed with them. If you signed an adjustable rate mortgage or something like that you may not LIKE how much your payment is rising, but that's what you agreed to. If you cannot continue to make the payments, sell the property, nor negotiate a lower payment with them the house will go into foreclosure and your credit will be shot.

If the bank is changing your payment in some way that is not in accordance with the note you signed you need to be hiring an attorney.

More details about your specific situation would help get you more detailed answers.

I will add it is not always as easy as it sounds, I am helping someone right now and the mortgage company told me on the phone that they would rather foreclose that take a short sell, They will not even give us a figure they would accept for a sale. Plus the collection people will even tell them that they don't have a loan migration department or a person who will make any deals. They would not accept a buyout without all sorts of added fees,

I was told personally when asking for them to lower some early buyout fees by 1000 that they would not lower their fees one dollar but would foreclose first.

So in general yes you try and work out some deals, but there are many mortgage companies out there that are little more than loan sharks from what I can tell.