Wamu modification anychance?

[Mike]

Have a mortgage through WAMU. To make a long sory short. My income is low compared to what it was when I bought the house. My wife was out of work for 3 months due to a high risk pregnancy. Living paycheck to pay check before that got way behind on mortgage. We will be 4 months behind on August 1st. Problem is we are in a deficit at the current payment. With escrow and all it is $1,487 regulay payment is 1,052. We are negative $250 every month. Current rate is 8%. We have about $20,000 added to the loan previously when A foreclosure was filed before. Really want to save the home. A loss mitigation person has our file and said they are seeing what they could do if anything. Should I reallly hold out hope or just move out and find a place to live? We owe $156,000 it is now worth onlt around $140,000 or so.