If you stop paying on your home, it takes up to 6 months before foreclosure proceedings start. You say selling is not an option, but I would at least speak with a Realtor in your area as to what you’re real options about selling are. The 2 loan companies may work out something with a new buyer, such as refinancing etc. If you decide to let the home go into foreclosure, nothing bad is going to happen to you. It simply goes through the courts and is sold to the highest bidder. Any difference in money owed after the auction, you will be responsible for. Example: if the highest bid is $200,000–you would be responsible for $75,000. If you choose not to pay that amount over the months, the IRS will take any refunds due to you over the next several years until it is satisfied and plus the fact that the lenders may sue you for the difference in what would be owed. The only way to stop a foreclosure, once it’s put into force, is to file bankruptcy, but that’s not an option now. Keep in mind this is not legal advise, but I have been through foreclosure and this is basically what happens.

Your home will end up in foreclosure. If selling is not an option, then you need to meet with your lender(s) and see if they can help you work out a solution. If you want to walk away from the home, I’m not sure why you didn’t include it in the bankruptcy. And, yes, a foreclosure will affect your credit. You won’t go to jail, nor will you lose your job. However, you will end up owing whatever the bank can’t get out of selling the home. I don’t know the residency requirements for your husband’s job, but he should contact the HR department of the agency he works for to find out.