Unfortunately, if you experience a loss of job, reduction of income, or some other financial or life hardship you could find yourself facing a foreclosure. If the house is sold at an amount less than what you owe then you will likely face a lawsuit for the deficiency.
However, if you qualify for a Chapter 7 bankruptcy then you typically can discharge the debt owed on the house. If you file a Chapter 13 bankruptcy then you can pay back the arrears through a 60 month Chapter 13 plan in addition to paying the normal monthly payments. Typically, our Chapter 7 and Chapter 13 clients pay back none or very little of their credit card debt.