[Lida1]

I am one of the pepole stuck in a adjustable mortgage. I am current on the mortgage, but the rate increase has caused me to neglect other bills; subsequently reflecting in a credit rating too low to refinance. I can't handle another rate increase . Should I stop paying the mortgage wich will eventually end in foreclosure to pay other bill and repair my credit, or will the foreclosure cause such devistation to my credit that it won't matter either way.

[George_1950]

Good question. I believe the most important thing is to have your budget in balance. Income must equal expenses; if not, you must increase income or decrease expenses. You have to live somewhere so you can remain in your home for several months (free), I would expect, which might let you catch-up your other payments. A foreclosure will hurt, as will bankruptcy; but you can repair your credit over time in any event. Don't beat yourself up over this.

[orayn45]

Call your mortgage company and let them know what's going on. See if they'll work with you.

[andresaverona]

I'm passing for the same situation.
If you can't afford the mortgage now, why you going to wait? You don't want loose more money.
They will increase more later for sure and you going to end up walk away anyway.
Don't do bankruptcy, try to do short sale with companies that going to mail to you when you stop paying the mortgage, that's better for your credit.
If not work, the best is do foreclosure. You can built your credit and 3-4 years you can buy again.
I don't recommend you leave on the house for free if you already decide to move away.
You going to still for the bank, everything you do comes back!
Good luck