[rox333]

We have a 10 year, interest only mortgage which will be due in 5 more years. Our home loan is $312K and we have an equity loan that we took out a year later for $64K. We have fallen behind on our payments due to my husband losing his job. Our property taxes (per year) is running around $4K - $6K (the higher amount was before the economy crash). We also have 3-4 high balances on credit cards totaling almost $30K.
We are looking mostly at finding options to keep the home (we live in California - need I say more?) - our interest on our first is 5.5377% (payments of $1365 per month/10 years). Then it rate will go to $2212.82 (239 total payments), then 1 final payment of $2214.72. Finalizing in the year of 2035! I am 58 and my husband is 50. Our total gross income currently is $3200 (this is my income). He is waiting to see if a job is coming through (last interview good). If it does, his monthly income will range from $3000-$4000+ per month.
We have already discussed our situation with a bankruptcy attorney and he suggested that we let the house go along with our high credit card balances... if that is the case, we lose the house, lose our great credit score which was 747 and start all over. Is this a wise solution since the value of our home is currently down to $176K? Will it take so long to recover from the state of the economy, to just hand over the house and begin renting with no write offs for taxes? ARe we truly making the best overall decision to file bankruptcy than to attempt to keep the home? I want to make sure we are making the best decision for our particular situation and not just jumping into bankruptcy without really considering every option. My 3 children (adults) do not feel I should let this house go... I am at a standstill but need to make a decision soon as right now I could get current on the mortgage (but it will be a struggle until my husband has an official job offer). What should I do? Is it too late for me to start over?