We are having financial hardship due to loss of income. Hubby became disabled so now we owe more than we make. We had a loan modification on our mortgage, but are still struggling. Our credit is now low due to collections on credit cards we cannot pay. Our solution was to sell our home, which has over $200K in equity and use it to pay off debt and put a large down payment on a new home. However, I'm being told that I would not qualify for a new loan until I pay my mortgage on time for 12 months. Is there any way to go around that? If so, we cannot afford rent in our area, and would need to keep our home and explore other options. Any advice?