I am current on my mortgage payments however, my supportive income has been lost due to our separation. We were not married and his name was not on my home loan. I have attempted to sell the house in the past with no luck. I'm raising my children alone and it will be a true struggle to make the monthly mortgage payment. The house is only three years old and is worth approximately $165,000.00. I did not expect this change or anticipate he would leave. If I deed the house back to the bank and they accept, how long will this appear as a foreclosure on my credit report. Is it wise to not make the payments in order to save money and wait for the eventual foreclosure and move or just give it back now?

It will be a deed in lieu and will effect your credit IF the bank accepts it... big IF. Take second job and cut your expenses... this is the roof over your kids' heads and losing it is the LAST thing you want to do.