First of all, call your lender. There are so many other options right now to lower your payments by the lender forgiving some debt or by stretching out the time payment, lowering your rate or many other things. Don't think that all is lost. A foreclosure is an awful thing to go through, but, as a realtor, I know that you have a lot of other options before you have to go that way (and ruin your credit, lose your home etc.). It won't be easy, but start doing some research. It's not hopeless, but you may be able to save your home. Good luck. For instance, see
http://www.fhfa.gov/webfiles/267/SMPimplementation121808.pdf