Has anyone been through a foreclosure?

We are heading that way and I don't know what to expect or what will happen if we just walk away from our house.

If everything has failed and the bank is foreclosing, they will serve you with a Summons from the local Courts that will advise you that they are legally going to take your property for the monies owed them. You will have 20 days to answer this Summons. If you do not , the bank will be give a Default Judgement and they will given legal permission to auction off your property. I suggest you answer the Summons. If you cannot afford a law. Learn how to represent yourself as a Pro Se attorney. Educate yourself on this process, find free legal help.

Well, we found a rental home to live in because we did not want to be kicked out of our house and be on the streets with our kids so there is no way we can keep our original home because we could not make the higher payments due to an ARM adjustment. The reason we got another place to live is our mortgage company would not help us, when I got the Arm adjustment notice in December I called them immediately and got instructions and paperwork to do a modification which I did right away. I waited through Jan. and Feb. with no contact from them so I started calling the beginning of March and could not get the lady who was working on our modification to call back for months! No one there could give me a straight answer until finally in April the lady answered her phone and just told me no, they could not help us and to maybe try again in July. Well, all this time we have been making our payments even though it is $600 more per month! We are charging our gas and groceries and going completely broke trying to keep up our payments until we could not do it any longer because they would not help us in any way. Only when we stopped making payments did they start calling us but all they wanted was their money and had no help or advise. So I know it is going to foreclosure, I just wanted to know what to expect and what we should do along the way.

Thanks for all your advise!

It can go for months before they foreclose completely, in some states it will merely be done by paperwork, in others there will be a formal court hearing. I have some people who did not pay for 9 months and were not evicted yet.
And when they do formally foreclose, they will have to evict you.

But basically they will take the house and sell it and you will owe the differnce in most cases.

After you are 3 or 4 months behind in payments most banks will be more willing to do some type of deal.