...will filing for bankruptcy do? I will be behind on my payments and eventually be in foreclosure. what can I do? I can't even afford to refinance because my payments will be very high due to negative amortization loan and low credit score. Selling is not much of an option either because it is not a sellers market right now and I'm pregnant I dont want to lose my home! Any suggestions will be greatly appreciated.

Go talk to your bank RIGHT NOW! It is better for them that you don't default, so they will try to work with you on refinancing options. No one wins in foreclosure.Good luck!

It can be possible that payments are stopped for a few months to help you gain some financial stability and then continue the payments, called as forbearance. Another option is refinance now even if rate you get is higher into a frm and after some time when your credit improves shift to some other mortgage and avail lower rates.

The mortgage balance is still high because of the negative amorization but is there any equity left in the house? Are you aware of it? If there is still some equity then you would have chances of being able to qualify for refinance.

As Jalanrosh said you need to talk with your mortgage company as early as possible to know the options open for you.

And remember foreclosure can always be avoided if right steps are taken.